Discounted Cash Flow Calculation for BSE:532628 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:532628 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.
3i Infotech's share price is below the future cash flow value, but not at a moderate discount (< 20%).
3i Infotech's share price is below the future cash flow value, but not 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
3i Infotech's earnings available for a low price, and how does
this compare to other companies in the same industry?
3i Infotech's earnings are expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
Unable to determine if 3i Infotech 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.
3i Infotech'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
3/6, 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. Padmanabhan Iyer has been the Managing Director and Chief Executive Officer of 3i Infotech Limited since August 11, 2016 and has been its Executive Director since May 18, 2016. Mr. Iyer has been Chief Financial Officer of 3i Infotech Limited since November 11, 2014. He served as Acting Chief Executive Officer at 3i Infotech Limited since June 07, 2016 until August 11, 2016 and served as its President. Mr. Iyer serves as the Chief Executive Officer and President for Elegon Infotech Limited China. Mr. Iyer headed the Technology Services and Managed Services businesses and the product development for Elegon Infotech ’s Banking, ERP and Insurance businesses, before which he headed the BPO division. He served as the President of Finance at 3i Infotech Limited. He was Head - Assets Back-office Processing Group of the IT Enabled Services Division. Mr. Iyer has held senior management positions in organizations such as Ispat Industries, the ITC Group, Caprihans India and Reliance Communications, among others He has profound knowledge and experience in the techno-financial arena. His career in Information Technology, banking and financial services spans over 27 years. He has completed the Advanced Masters Program in Management of Global Enterprises conducted by the Globally Distributed Work Foundation, a consortium of the Indian Institute of Management Bangalore (IIMB); SDA Bocconi, Milan; City University of Hong Kong; and the UCLA Anderson School of Management, US. He holds a Master's degree in Financial Management from the Jamnalal Bajaj Institute of Management Studies , University of Mumbai and has completed his Inter (Accounts Group) from the Institute of Chartered Accountants of India.
Padmanabhan's compensation has been consistent with company performance over the past year.
Padmanabhan's remuneration is higher than average for companies of similar size in India.
MD, Global CEO
Global Head of Human Resource
Executive VP and Global Head of Financial Services & Insurance
Executive VP & Global Head of Banking Products
Executive VP & Global Head of ERP Product
Executive VP & Global Head of IT Services
Chief Executive Officer of Professional Access
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the 3i Infotech board of directors is less than 3 years, this suggests a new board.
3i Infotech Limited provides IP based software solutions and information technology services in India and internationally. The company offers Kastle Universal Lending System, a solution that automates and manages application processing for retail financing; Kastle CRx, a financial analysis and risk rating tool to assess and monitor a borrower’s credit worthiness; Kastle Core Banking, a solution that provides various banking operations; Kastle Factoring, a Web-based and platform-independent solution; Factor/SQL, a factoring software solution; Kastle Treasury, a treasury management solution; Kastle Risk Management, an Web-based market risk management solution; AMLOCK, a Web-based anti-money laundering, and financial crime detection and management solution; Kastle Internet Banking; KASTLE Asset Liability Management solution; Kastle Business Intelligence; and Kastle Integrated Risk Management solutions. It also provides PREMIA General Insurance, PREMIA Life, PREMIA Health, PREMIA Astra General Insurance Suite, PREMIA Astra Core Modules, and PREMIA Life Insurance 11J to manage insurance business processes; MFund Plus Suite, an investment management solution; MFund, a multi-currency, multi-fund portfolio accounting, valuation, and performance evaluation system; Premia Pension solution; PREMIA Group Life solution; and PREMIA e-portal, an insurance-specific Web portal solution, as well as enterprise resource planning solutions under the Orion name. In addition, it offers GeSTup, a cloud based application for filing good and services tax returns; Customer Reach and User Experience; Accelerate. Enable. Scale; Conversational; Blockchain; Momenta; HybridNxT; Maggie; and Flexib solutions. It serves customers in banking, insurance, capital markets, asset and wealth management, government, manufacturing, distribution, telecom, and healthcare industry verticals. The company was founded in 1993 and is headquartered in Navi Mumbai, India.
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