Discounted Cash Flow Calculation for NSEI:CAPACITE 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:CAPACITE DCF 1st Stage: Next 10 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
Capacit'e Infraprojects's earnings available for a low price, and how does
this compare to other companies in the same industry?
Capacit'e Infraprojects's earnings are expected to grow significantly at over 20% yearly.
Capacit'e Infraprojects'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.
Capacit'e Infraprojects'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
2/6, 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
Capacit'e Infraprojects's finances.
The net worth of a company is the difference between its assets and liabilities.
Capacit'e Infraprojects is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Capacit'e Infraprojects's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Capacit'e Infraprojects'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 covered by short term assets, assets are 5x 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. Saroj Kumar Pati has been Chief Operating Officer of West Zone at Capacit'e Infraprojects Limited since May 17, 2016. Mr. Pati Joined Capacit'e Infraprojects Limited in March 17, 2016. His functions and areas of experience in Capacit'e Infraprojects Limited include achieving revenue targets, budgeted profitability, positive cash flow and customer satisfaction besides ensuring compliance with statutory provisions, contractual requirements and internal policies. He has approximately 27 years of experience. He was associated with JMC Projects (India) Limited. He holds a Bachelor of Science Degree in Civil Engineering from Regional Engineering College, Rourkela, Sambalpur University.
Insufficient data for Saroj to compare compensation growth.
Saroj's remuneration is lower than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Capacit'e Infraprojects management team is less than 2 years, this suggests a new team.
Chief Executive Officer
Executive Director & CFO
Gopal Krishna Parmeshwar
Chief Operating Officer
Milind Madhukar Joshi
Chief Operating Officer
Company Secretary & Compliance Officer
MD & Director
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Capacit'e Infraprojects board of directors is about average.
Investors Are Undervaluing Capacit'e Infraprojects Limited (NSE:CAPACITE) By 25.92%
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How Capacit'e Infraprojects Limited (NSE:CAPACITE) Could Add Value To Your Portfolio
Capacit'e Infraprojects Limited (NSE:CAPACITE) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … In the case of CAPACITE, it
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Why Capacit'e Infraprojects Limited (NSE:CAPACITE) Looks Like A Quality Company
Our data shows Capacit'e Infraprojects has a return on equity of 11% for the last year. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
What Should You Know About The Future Of Capacit'e Infraprojects Limited's (NSE:CAPACITE)?
Since Capacit'e Infraprojects Limited (NSE:CAPACITE) released its earnings in March 2018, … the consensus outlook from analysts appear fairly confident, … with profits predicted to increase by 27% next year,
Read This Before You Buy Capacit'e Infraprojects Limited (NSE:CAPACITE) Because Of Its P/E Ratio
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Capacit'e Infraprojects Limited (NSE:CAPACITE) Has Attractive Fundamentals
Capacit'e Infraprojects Limited (NSE:CAPACITE) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of CAPACITE, it
How Capacit'e Infraprojects Limited's (NSE:CAPACITE) Earnings Growth Stacks Up Against The Industry
After reading Capacit'e Infraprojects Limited's (NSE:CAPACITE) latest earnings update (31 March 2018), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … Could CAPACITE beat the long-term trend and outperform its industry. … CAPACITE's trailing twelve-month earnings (from 31 March 2018) of ₹795.7m has
What Does Capacit'e Infraprojects Limited's (NSE:CAPACITE) Ownership Structure Look Like?
I am going to take a deep dive into Capacit'e Infraprojects Limited’s (NSE:CAPACITE) most recent ownership structure, not a frequent subject of discussion among individual investors. … The impact of a company's ownership structure affects both its short- and long-term performance. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment.
Capacit'e Infraprojects Limited engages in construction and engineering business in India. It undertakes construction works of high rise and super high rise buildings, gated communities, villaments, commercial and office complexes, residential buildings, institutional buildings, and multi-level car parks. The company is also involved in the provision of turnkey works, civil and structural works, and finishing works, as well as mechanical, electrical, and plumbing works. In addition, it provides contracting services, such as design and building solutions; and trades in construction materials. The company was founded in 2012 and is headquartered in Mumbai, India.
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