Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
New India Assurance. This is due to cash flow or dividend data being
unavailable. The share price is
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
New India Assurance's
is considered below, and whether this is a fair price.
Price based on past earnings
New India Assurance's earnings available for a low price, and how does
this compare to other companies in the same industry?
New India Assurance's earnings are expected to grow by 14.5% yearly, however this is not considered high growth (20% yearly).
New India Assurance's revenue is expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).
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.
New India Assurance'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.
New India Assurance
has a total score of
3/6, 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
New India Assurance's finances.
The net worth of a company is the difference between its assets and liabilities.
New India Assurance's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
New India Assurance has no long term commitments.
This treemap shows a more detailed breakdown of
New India Assurance'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.
Low level of unsold assets.
New India Assurance has no debt, it does not need to be covered by short term assets.
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
Shri Atul Sahai has been Director of Agriculture Insurance Company of India Ltd. since 2019. He has been Chairman and Managing Director of New India Assurance Company Ltd. since December 4, 2018. He has been a Non-Executive Director of GIC Housing Finance Limited since February 1, 2019. Shri Sahai served as a General Manager of The Oriental Insurance Company Limited since August 17, 2015 until 2018. Shri Sahai, a Post Graduate, is a Direct Recruit Officer of the 1984 batch and got his first joining at The New India Assurance Company Ltd. where he has handled many Departments till October 2012 like Personnel, Claims, Accounts, Development & Management of Business, Technical (U/W & Claims), I.T. (Project Manager), Investment Operations, Recruitment, HR etc. He joined Oriental Insurance Company Ltd. in 2012 as DGM and elevated to the cadre of General Manager in August 2015. Shri Sahai has been National Head for underwriting and claims for liability and miscellaneous Line of Buisness. He was instrumental in formulating policies in consultation with GIPSA for Personal lines Insurance Policies sold through the Banks named Pradhan Mantri Suraksha Bima Yojana.
Insufficient data for Atul to compare compensation growth.
Insufficient data for Atul to establish whether their remuneration is reasonable compared to companies of similar size in India.
Management Team Tenure
Average tenure and age of the
New India Assurance
management team in years:
The tenure for the New India Assurance management team is about average.
GM & Whole Time Director
Chief Underwriter - London
Chairman & MD
GM & CFO
Chief Operating Officer
Deputy GM & Chief Investment Officer
Company Secretary & Chief Compliance Officer
Chief Marketing Officer & GM
Chief of Internal Audit
Board of Directors Tenure
Average tenure and age of the
New India Assurance
board of directors in years:
The average tenure for the New India Assurance board of directors is less than 3 years, this suggests a new board.
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The New India Assurance Company Limited, together with its subsidiaries, operates as a general insurance company in India and internationally. The company provides marine cargo, marine hull, motor, personal accident, aviation, engineering, health, workmens’ compensation, travel, crop, machinery insurance, fire, office protection, shop keeper, loss of profit insurance, and standalone terrorism insurance products. It also offers reinsurance products. The New India Assurance Company Limited was founded in 1919 and is headquartered in Mumbai, India.
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