Discounted Cash Flow Calculation for NSEI:AARVI using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future dividends to their present value. This
approach is used for finance firms where free cash flow is difficult to estimate
(e.g. Banks/ Insurance firms).
If the firm does not pay the majority of its earnings out as a dividend this
method will often arrive at a value significantly lower than the share price.
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
Aarvi Encon's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Aarvi Encon has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Professional Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Aarvi Encon's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Aarvi Encon's earnings growth to the India market average as no estimate data is available.
Unable to compare Aarvi Encon's revenue growth to the India market average as no estimate data is available.
Unable to determine if Aarvi Encon is high growth as no earnings estimate data is available.
Unable to determine if Aarvi Encon 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.
Aarvi Encon'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.
Mr. Virendra Dalpatram Sanghavi serves as Managing Director of Aarvi Encon Limited. Mr. Sanghavi is Promoter & Founding Director of Aarvi Encon is serving the company as Managing Director. He has more than 45 years experience and excellent track record in design, development, construction and operation of process plants in India and Internationally. He served as the President and on the Board of Governors of ICT formerly UDCT/UICT, he has been the Honorary Treasurer of Indian Institute of Chemical Engineers. Prior to Aarvi Encon, he was working with various Engineering, Oil & Gas and Petrochemical companies such as Merck Sharp & Dohme India Ltd., Lubrizol India Ltd. (Erstwhile Davy Powergas) and Bhansali Engineering Polymers Ltd. He serves as a Director at Aarvi Encon Limited. He is a visiting lecturer of ICT teaching piping engineering. Mr. Sanghavi is Graduate in Chemical Engineering from UDCT.
Virendra's compensation has been consistent with company performance over the past year, both up more than 20%.
Virendra's remuneration is higher than average for companies of similar size in India.
MD & Director
CFO & Executive Director
Company Secretary & Compliance Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Aarvi Encon board of directors is less than 3 years, this suggests a new board.
Board of Directors
MD & Director
CFO & Executive Director
Additional Independent Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
What Kind Of Shareholder Appears On The Aarvi Encon Limited's (NSE:AARVI) Shareholder Register?
As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' With a market capitalization of ₹414m, Aarvi Encon is a small cap stock, so it might not be well known by many institutional investors. … Taking a look at our data on the ownership groups (below), it's seems that institutions don't own shares in the company. … View our latest analysis for Aarvi Encon NSEI:AARVI Ownership Summary, August 27th 2019 What Does The Lack Of Institutional Ownership Tell Us About Aarvi Encon?
Three Things You Should Check Before Buying Aarvi Encon Limited (NSE:AARVI) For Its Dividend
Last year, Aarvi Encon paid a dividend while reporting negative free cash flow. … We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look. … However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Aarvi Encon has grown its earnings per share at 7.2% per annum over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Aarvi Encon's prospects of growing its dividend payments in the future. We'd also point out that Aarvi Encon issued a meaningful number of new shares in the past year. Regularly issuing new shares can be detrimental - it's hard to grow dividends per share when new shares are regularly being created. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.
Did You Manage To Avoid Aarvi Encon's (NSE:AARVI) 43% Share Price Drop?
That downside risk was realized by Aarvi Encon Limited (NSE:AARVI) shareholders over the last year, as the share price declined 43%. … Even though the Aarvi Encon share price is down over the year, its EPS actually improved. … Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.
Where Aarvi Encon Limited (NSE:AARVI) Stands In Terms Of Earnings Growth Against Its Industry
Below, I will run you through a simple sense check to build perspective on how Aarvi Encon is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its professional services industry peers. … However, its return on assets (ROA) of 9.8% exceeds the IN Professional Services industry of 7.4%, indicating Aarvi Encon has used its assets more efficiently. … You should continue to research Aarvi Encon to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for AARVI’s future growth?
Brief Commentary On Aarvi Encon Limited's (NSE:AARVI) Fundamentals
NSEI:AARVI Income Statement, May 29th 2019 Next Steps: For Aarvi Encon, there are three relevant aspects you should look at: Future Outlook: What are well-informed industry analysts predicting for AARVI’s future growth? … Take a look at our free research report of analyst consensus for AARVI’s outlook. … The intrinsic value infographic in our free research report helps visualize whether AARVI is currently mispriced by the market.
Do You Know What Aarvi Encon Limited's (NSE:AARVI) P/E Ratio Means?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll apply a basic P/E ratio analysis to Aarvi Encon Limited's (NSE:AARVI), to help you decide if the stock is worth further research. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Do Aarvi Encon Limited’s (NSE:AARVI) Returns On Capital Employed Make The Cut?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Did Changing Sentiment Drive Aarvi Encon's Share Price Down A Worrying 54%?
Unfortunately, shareholders of Aarvi Encon Limited (NSE:AARVI) have suffered share price declines over the last year. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Even though the Aarvi Encon share price is down over the year, its EPS actually improved.
Does Aarvi Encon Limited's (NSE:AARVI) P/E Ratio Signal A Buying Opportunity?
We'll show how you can use Aarvi Encon Limited's (NSE:AARVI) P/E ratio to inform your assessment of the investment opportunity. … Aarvi Encon has a P/E ratio of 5.59, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Aarvi Encon Limited provides manpower outsourcing and consultancy services in India and internationally. The company offers IT staffing, manpower outsourcing/technical staffing, project management, construction supervision, procurement assistance/expediting, inspection, pre-commissioning and commissioning, operation and maintenance, and shutdown, as well as engineering services. It serves the IT, engineering/EPC, oil and gas, LNG, metal and mineral, fertilizer, telecom, refinery/petrochemical, pipeline, infrastructure, power, renewable energy, cement, and CGD/CNG, as well as metro and mono rail/railway industries. The company was founded in 1987 and is headquartered in Mumbai, India.
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