Discounted Cash Flow Calculation for BSE:512175 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.
BSE:512175 DCF 1st Stage: Next 5 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.
Vama Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
Vama Industries's share price is below the future cash flow value, and 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
Vama Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
Vama Industries's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Vama Industries 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.
Vama Industries'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
0/6, 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. Vegesna Atchyuta Rama Raju, also known as Vijay, has been the Chairman and Managing Director of Vama Industries Limited since April 2005. Mr. Raju is in the business of polymers for about more than a decade. He serves as an Executive Director of Vama Industries Limited. He holds a Bachelor of Commerce from Andhra University in 1984.
Vijay's compensation has been consistent with company performance over the past year.
Vijay's remuneration is higher than average for companies of similar size in India.
Chairman & MD
Chief Financial Officer
Chief Operating Officer
Manager of Administration
Company Secretary & Compliance Officer
M. Kalyan Varma
Senior Manager of Global Sales
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Vama Industries board of directors is about average.
Vama Industries Limited provides engineering, IT, and IT enabled services in India and internationally. It offers IT services and consulting solutions, including software development and mobile application, BI analytics and robotic process automation, manual testing and automation testing, application testing, cloud technologies, enterprise database, cloud computing, enterprise database, and Internet of things services. The company also provides engineering design and development services consisting of CAD and engineering data management, product design and development, and product sales and support services to the automotive, mechanical, aerospace, heavy engineering, and oil and natural gas verticals. In addition, it offers IT infrastructure solutions, such as data center products and services; high performance computing, cluster computing, application, and workload management services; remote infrastructure management services; IT infrastructure consultancy services for supply and installation and configuration of IT hardware, software, data center engineering build, and service support; and infrastructure management services, including network management and storage management services. The company was formerly known as Sanjeevni Industries Limited and changed its name to Vama Industries Limited in March 2005. The company was incorporated in 1985 and is based in Hyderabad, India.
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