Discounted Cash Flow Calculation for BSE:531082 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.
BSE:531082 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
Alankit's earnings available for a low price, and how does
this compare to other companies in the same industry?
Alankit's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if Alankit 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.
Alankit'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
4/6, 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. Ankit Agarwal has been Managing Director of Alankit Limited since May 26, 2014. Mr. Agarwal served as Compliance Officer and Secretary of Alankit Limited since June 10, 2015. Mr. Agarwal has been an Executive Director of Alankit Limited since May 26, 2014.
Ankit's compensation has increased by more than 20% in the past year.
Ankit's remuneration is higher than average for companies of similar size in India.
MD & Executive Director
Chief Financial Officer
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Alankit board of directors is about average.
Where Alankit Limited (BOM:531082) Stands In Terms Of Earnings Growth Against Its Industry
When Alankit Limited (BOM:531082) announced its most recent earnings (31 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … 531082's trailing twelve-month earnings (from 31 March 2018) of ₹215.55m has. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 92.72%, indicating the rate at which 531082 is growing has slowed down
Alankit Limited provides in e-governance services and products in India. The company accepts PAN applications; change in PAN particulars applications; and e-TDS/e-TCS/AIR/e-TBAF returns in electronic mode from corporate and non-corporate assesses. It is also involved in the digitization of paper returns filed with income tax department. In addition, the company enrolls residents with Aadhaar, a unique identification number that is issued by Unique Identification Authority of India; and provides services of National Skills Registry. Further, it engages in the provision of services to policyholders as National Insurance Repository; services for implementing and managing paper to follow process; and services as a business correspondent to the State Bank of India and other banks, as well as manpower services. Additionally, the company is involved in the scanning and digitization of medical records; distribution of ID card printers; Aadhaar seeding for enabling de-duplication of database; and distribution, storage, and inventory management of LED bulbs and ceiling fans. It also offers Aadhaar enabled services to its beneficiaries, clients, and customers; know your customer user agency services; and point of presence service provider services for New Pension System, as well as Atal Pension Yojana and GST services. The company was formerly known as Euro Finmart Limited and changed its name to Alankit Limited in September 2014. Alankit Limited was incorporated in 1989 and is based in New Delhi, India.
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