Discounted Cash Flow Calculation for NSEI:KESARENT using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
NSEI:KESARENT DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Kesar Enterprises's share price is below the future cash flow value, and at a moderate discount (> 20%).
Kesar Enterprises's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Kesar Enterprises's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Kesar Enterprises has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Food industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Kesar Enterprises's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Kesar Enterprises's earnings growth to the India market average as no estimate data is available.
Unable to compare Kesar Enterprises's revenue growth to the India market average as no estimate data is available.
Unable to determine if Kesar Enterprises is high growth as no earnings estimate data is available.
Unable to determine if Kesar Enterprises is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Kesar Enterprises's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Kesar Enterprises's finances.
The net worth of a company is the difference between its assets and liabilities.
Kesar Enterprises's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Kesar Enterprises's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Kesar Enterprises's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.4x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Harsh Rajnikant Kilachand, B. Com., C.B.M. & P.D.B.M. (ULCA - U.S.A.) is Executive Chairman and Whole-Time Director at Kesar Terminals & Infrastructure Ltd since December 20, 2017. Mr. Kilachand has been the Chairman and Managing Director of Kesar Enterprises Limited since August 14, 1997. Mr. Kilachand has vast experience. He has contributed a lot towards the growth of KEL as a whole including the Demerged Storage Undertaking. He was responsible for completion of expansion & modernisation of the Storage Terminals at Kandla. Shri. Kilachand served as the Chief Executive Officer and Managing Director of Kesar Terminals & Infrastructure Limited. He served as the Executive Chairman of the Board for Kesar Terminals & Infrastructure Limited from September 14, 2010 to April 29, 2016. He has been a Director for Kesar Enterprises Limited since August 8, 1985. He serves as a Director at Kesar Corporation Pvt. Ltd.; Indian Commercial Co. Pvt. Ltd.; India Carat Pvt. Ltd.; Kilachand Devchand & Co. Pvt. Ltd.; Kilachand Devchand Commercial Pvt. Ltd.; Seel Investment Pvt. Ltd. and Duracell Investments & Finance Pvt. Ltd. Shri Kilachand has B. Com., C.B.M., and P.G.D.B.M., U.C.L.A. (U.S.A.).
Harsh's compensation has been consistent with company performance over the past year, both up more than 20%.
Harsh's remuneration is lower than average for companies of similar size in India.
Chief Financial Officer
Senior VP of Legal
Chairman & MD
Senior Vice President of Project & Technical
President of Baheri
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Kesar Enterprises board of directors is less than 3 years, this suggests a new board.
Do Directors Own Kesar Enterprises Limited (NSE:KESARENT) Shares?
If you want to know who really controls Kesar Enterprises Limited (NSE:KESARENT), then you'll have to look at the makeup of its share registry. … Generally speaking, as a company grows, institutions will increase their ownership. … See our latest analysis for Kesar Enterprises
Kesar Enterprises Shareholders Have Enjoyed A 80% Share Price Gain
For example, the Kesar Enterprises Limited (NSE:KESARENT) share price is 80% higher than it was five years ago, which is more than the market average. … Kesar Enterprises isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … Revenue has been growing at a reasonable clip, so it's debatable whether the share price growth of 12% full reflects the underlying business growth.
Do Directors Own Kesar Enterprises Limited (NSE:KESARENT) Shares?
Every investor in Kesar Enterprises Limited (NSE:KESARENT) should be aware of the most powerful shareholder groups. … With a market capitalization of ₹280m, Kesar Enterprises is a small cap stock, so it might not be well known by many institutional investors. … See our latest analysis for Kesar Enterprises
Does Kesar Enterprises Limited (NSE:KESARENT) Have A Volatile Share Price?
Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful.
Before You Buy Kesar Enterprises Limited's (NSE:KESARENT), Consider This
If you are a shareholder in Kesar Enterprises Limited’s (NSE:KESARENT), or are thinking about investing in the company, knowing how it contributes to the risk and reward profile of your portfolio is important. … Generally, an investor should consider two types of risk that impact the market value of KESARENT. … The second risk is market-wide, which arises from investing in the stock market.
Is It Time To Buy Kesar Enterprises Limited (NSE:KESARENT) Based Off Its PE Ratio?
It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for KESARENT Price per share = ₹36.6 Earnings per share = ₹3.796 ∴ Price-Earnings Ratio = ₹36.6 ÷ ₹3.796 = 9.6x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you are inadvertently comparing lower risk firms with KESARENT, then KESARENT’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.
Kesar Enterprises Limited engages in the manufacture, marketing, and sale of sugar and spirits in India. Its Sugar segment manufactures and sells sugar and by-products. The company’s Power segment operates a 44 MW bagasse based cogeneration power plant at Baheri in Bareilly District, Uttar Pradesh. Its Spirits segment manufactures and sells rectified spirit, extra neutral alcohol, country liquor, special denatured spirit, Indian made foreign liquor, and carbon dioxide. The company was formerly known as The Kesar Sugar Works Limited. Kesar Enterprises Limited was founded in 1932 and is based in Mumbai, India.
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