Discounted Cash Flow Calculation for NSEI:SJVN 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:SJVN 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.
SJVN's share price is below the future cash flow value, and at a moderate discount (> 20%).
SJVN'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
SJVN's earnings available for a low price, and how does
this compare to other companies in the same industry?
Unable to determine if SJVN is high growth as no earnings estimate data is available.
Unable to determine if SJVN 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.
SJVN'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. Nand Lal Sharma has been Chairman and Managing Director of SJVN Limited since December 01, 2017. Mr. Sharma served as the Director of Personnel at SJVN Limited from March 22, 2011 to November 30, 2017 and served as its an Executive Director of Human Resources since joining in July 28, 2008. Mr. Sharma is an officer of HP State Administrative Services. Prior to SJVN Limited, he served as special secretary (General Administration Department and Health) and Director Ayurveda with GoHP. He has been a Director of SJVN Limited since March 22, 2011. Mr. Sharma holds a Masters Degree in Business Administration from the University of Ljublijana, Slovenia. He serves as director of SJVN Thermal Private Limited and SJVN Arun-III Power Development Company Private Limited and Holds an M.Sc in Agricultural Economics.
Nand's compensation has been consistent with company performance over the past year.
Nand's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the SJVN management team is about average.
Chairman & MD
CFO, Director of Finance & Whole Time Director
Compliance Officer & Company Secretary
Director of Electrical & Whole Time Director
Director of Civil & Whole Time Director
General Manager of Personnel and Administration
General Manager of Information Technology & Communications and General Manager of Electrical Design
Chief Vigilance Officer
General Manager of Rampur Hydro-Electric Project
Additional General Manager of Finance
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the SJVN board of directors is less than 3 years, this suggests a new board.
Will SJVN Limited (NSE:SJVN) Continue To Underperform Its Industry?
and want to learn about Return on Equity using a real-life example. … But what is more interesting is whether SJVN can sustain or improve on this level of return. … Metrics such as financial leverage can impact the level of ROE which in turn can affect the sustainability of SJVN's returns.
Interested In SJVN Limited (NSE:SJVN)? Here's How It Performed Recently
Investors with a long-term horizong may find it valuable to assess SJVN Limited's (NSE:SJVN) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … Was SJVN's recent earnings decline indicative of a tough track record. … SJVN's trailing twelve-month earnings (from 31 March 2018) of ₹12.22b has
Should You Be Tempted To Buy SJVN Limited (NSE:SJVN) Because Of Its PE Ratio?
and want to begin learning about how to value company based on its current earnings and what are the drawbacks of this method. … SJVN Limited (NSE:SJVN) trades with a trailing P/E of 9.1x, which is lower than the industry average of 11.5x. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind
Is SJVN Limited's (NSE:SJVN) Balance Sheet Strong Enough To Weather A Storm?
While small-cap stocks, such as SJVN Limited (NSE:SJVN) with its market cap of ₹113.37b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.
Likewise, SJVN's shares are now trading at a price below its true value based on its PE ratio of 10.13x, compared to the industry and wider stock market ratio, making it a relatively cheap stock compared to its peers. … NSEI:SJVN Future Profit Jun 14th 18 Granules India Limited (BSE:532482) Granules India Limited manufactures and sells active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediates, and finished dosages (FDs) in India and internationally. … In addition to this, 532482's shares are now trading at a price below its true value based on its PE ratio of 14.54x, compared to the industry and wider stock market ratio, so potential investors can purchase the stock below its value.
I find that SJVN’s ratio of 10.17x is trading slightly below its industry peers’ ratio of 13.09x, which means if you buy SJVN today, you’d be paying a fair price for it. … And if you believe SJVN should be trading in this range, then there isn’t much room for the share price grow beyond what it’s currently trading. … SJVN’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.
What To Know Before Buying SJVN Limited (NSE:SJVN) For Its Dividend
View our latest analysis for SJVN 5 checks you should do on a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is its annual yield among the top 25% of dividend-paying companies? … If there's one type of stock you want to be reliable, it's dividend stocks and their stable income-generating ability. … Relative to peers, SJVN generates a yield of 7.45%, which is high for Electric Utilities stocks.Next Steps: Keeping in mind the dividend characteristics above, SJVN is definitely worth considering for investors looking to build a dedicated income portfolio.
Is SJVN Limited's (NSE:SJVN) Balance Sheet A Threat To Its Future?
SJVN has shrunken its total debt levels in the last twelve months, from ₹26.46B to ₹24.16B , which is made up of current and long term debt. … Moreover, SJVN has generated cash from operations of ₹23.77B in the last twelve months, leading to an operating cash to total debt ratio of 98.36%, meaning that SJVN’s debt is appropriately covered by operating cash. … Next Steps: SJVN has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at an appropriate level.
SJVN Limited (NSE:SJVN): What Is Driving Earnings Margins?
Margin Calculation for SJVN Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 15.44 Billion ÷ 24.69 Billion = 62.53% SJVN's margin has expanded in the past five years, as a result of average net income growth of 9.31% exceeding a 6.94% average growth in revenue, indicating that that the previous revenue growth has been acompanied by a growing portion translated in to earnings. … Using SJVN's margin expectations as a way to understand projections for the future Based on future expectations, SJVN's profit margin will reverse its previous trend and start to contract, with 3.13% in expected annual revenue growth and annual net income growth forecasted at 1.15%. … Thus, it is essential to run your own analysis on SJVN's future expectations whilst maintaining a watchful eye over the likelihood and sustainability of the top line performance that is expected to drive earnings growth.
SJVN Limited, together with its subsidiaries, engages in the generation and sale of power in India, Nepal, and Bhutan. It operates the Nathpa Jhakri Hydro Power Station with a capacity of 1500 MW located in Shimla district, Himachal Pradesh, India; and the Rampur Hydro Power Station with a capacity of 412 MW in Kullu District, Himachal Pradesh. The company also operates the Khirvire Wind Power Plant with a capacity of 47.6 MW in Nashik District, Maharashtra; the Charnakha Solar Power Plant with a capacity of 5 MW in Patan District, Gujarat; and an 86 km cross border transmission line with a capacity of 400 kV from Muzaffarpur to Sursand. In addition, it provides consultancy services in the field of hydropower, road/railway tunnels, etc., as well as from concept to commissioning of hydroelectric projects to various organizations. The company was formerly known as Satluj Jal Vidyut Nigam Limited and changed its name to SJVN Limited in September 2009. SJVN Limited was incorporated in 1988 and is headquartered in Shimla, India.
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