Discounted Cash Flow Calculation for NSEI:DEEPAKNI 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 use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
NSEI:DEEPAKNI DCF 1st Stage: Next 5 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
Deepak Nitrite's earnings available for a low price, and how does
this compare to other companies in the same industry?
Deepak Nitrite's earnings are expected to grow significantly at over 20% yearly.
Deepak Nitrite's revenue is expected to grow significantly at over 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.
Deepak Nitrite'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
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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. Umesh M. Asaikar has been the Chief Executive Officer of Deepak Nitrite Limited. since September 2008 and has been its Executive Director since May 9, 2013. Mr. Asaikar served as an Executive officer of Deepak Nitrite Limited. Mr. Asaikar served as a Director of Pharmaceuticals at Piramal Glass Ltd. until March 31, 2008. Mr. Asaikar has around 36 years of varied experience in the areas of Sales & Marketing, Manufacturing, Commercial and Business Management across industries including pharmaceuticals, vitamins & fine chemicals, glass flacconage etc. Mr. Asaikar has held various leadership positions in companies such as Parke Davis, Nicholas Piramal, Piramal Glass, etc. He holds a Bachelor's degree in Mechanical Engineering from the Indian Institute of Technology, Mumbai and Master's degree in Management Science from Jamnalal Bajaj Institute of Management Studies. He is also a member of the Institute of Cost Accountants of India.
Umesh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Umesh's remuneration is higher than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Deepak Nitrite management team is about average.
Chairman & MD
CEO & Executive Director
Director of Finance
Company Secretary & Compliance Officer
Associate VP & Whole-Time Director
Senior General Manager of Accounts & Taxation
Vice President of Human Resources
President of Bulk Chemicals
Head of Corporate Affairs & Communications
President of Bulk Chemicals & Commodities
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Deepak Nitrite board of directors is less than 3 years, this suggests a new board.
Is Deepak Nitrite Limited's (NSE:DEEPAKNI) High P/E Ratio A Problem For Investors?
To keep it practical, we'll show how Deepak Nitrite Limited's (NSE:DEEPAKNI) P/E ratio could help you assess the value on offer. … How Do I Calculate Deepak Nitrite's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Is Now The Time To Look At Buying Deepak Nitrite Limited (NSE:DEEPAKNI)?
This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether Deepak Nitrite's current trading price of ₹257.65 reflective of the actual value of the? … Let’s take a look at Deepak Nitrite’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
What Percentage Of Deepak Nitrite Limited (NSE:DEEPAKNI) Shares Do Insiders Own?
Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Deepak Nitrite is a smaller company with a market capitalization of ₹35b, so it may still be flying under the radar of many institutional investors. … View our latest analysis for Deepak Nitrite
With A -18% Earnings Drop, Did Deepak Nitrite Limited (NSE:DEEPAKNI) Really Underperform?
When Deepak Nitrite Limited (NSE:DEEPAKNI) announced its most recent earnings (31 March 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Was DEEPAKNI's recent earnings decline worse than the long-term trend and the industry. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 24%, indicating the rate at which DEEPAKNI is growing has slowed down
What Investors Should Know About Deepak Nitrite Limited's (NSE:DEEPAKNI) Financial Strength
While small-cap stocks, such as Deepak Nitrite Limited (NSE:DEEPAKNI) with its market cap of ₹33.0b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … since poor capital management may bring about bankruptcies, … I believe these basic checks tell most of the story you need to know.
Why We Think Deepak Nitrite Limited (NSE:DEEPAKNI) Could Be Worth Looking At
As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of Deepak Nitrite Limited (NSE:DEEPAKNI), it
How Did Deepak Nitrite Limited's (NSE:DEEPAKNI) 8.6% ROE Fare Against The Industry?
Deepak Nitrite Limited (NSE:DEEPAKNI) generated a below-average return on equity of 8.6% in the past 12 months, while its industry returned 14.2%. … An investor may attribute an inferior ROE to a relatively inefficient performance, and whilst this can often be the case, knowing the nuts and bolts of the ROE calculation may change that perspective and give you a deeper insight into DEEPAKNI's past performance. … Check out our latest analysis for Deepak Nitrite
Deepak Nitrite Limited (NSE:DEEPAKNI): Risks You Need To Consider Before Buying
Generally, an investor should consider two types of risk that impact the market value of DEEPAKNI. … The other type of risk, which cannot be diversified away, is market risk. … A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one.
Should You Be Concerned About Deepak Nitrite Limited's (NSE:DEEPAKNI) Shareholders?
In this article, I'm going to take a look at Deepak Nitrite Limited’s (NSE:DEEPAKNI) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … Although this is an important factor for long-term investors, many investors can also be impacted by institutional presence and their high-volume trading. … See our latest analysis for Deepak Nitrite
Is Deepak Nitrite Limited (NSE:DEEPAKNI) Attractive At Its Current PE Ratio?
This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … While DEEPAKNI might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.
Deepak Nitrite Limited manufactures and sells basic chemicals, fine and specialty chemicals, and performance products in India. The company's Basic Chemicals segments offers intermediates for dyes and pigments, rubber, fuel additives, pharmaceuticals, agrochemicals, and explosives. Its Fine and Speciality Chemicals segment provides products for agrochemicals, pigment pharmaceuticals, and personal care products. The company's Performance Products segment offers optical brighteners; and products for paper, detergent, and textile industries. It also exports its products to Europe, the United States, rest of Asia, and internationally. Deepak Nitrite Limited was founded in 1970 and is based in Vadodara, India.
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