Discounted Cash Flow Calculation for NSEI:INDIGRID using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
India Grid Trust
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
India Grid Trust
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
India Grid Trust's
is considered below, and whether this is a fair price.
Price based on past earnings
India Grid Trust's earnings available for a low price, and how does
this compare to other companies in the same industry?
India Grid Trust's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
India Grid Trust's revenue is expected to grow significantly at over 20% yearly.
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.
India Grid Trust'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.
India Grid Trust
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.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
India Grid Trust's finances.
The net worth of a company is the difference between its assets and liabilities.
India Grid Trust is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
India Grid Trust's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
India Grid Trust's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.1x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
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. Harsh Dinesh Shah is Chief Executive Officer at India Grid Trust and its whole-time Director. He was Chief Financial Officer of India Grid Trust since November 7, 2016. Mr. Shah serves as Chief Financial Officer of Sterlite Power Transmission Limited. He has approximately 10 years of experience in private equity financing, mergers and acquisitions, infrastructure financing, regulatory and macroeconomic policy issues with a focus on the infrastructure sector. He has been a Non-Executive Director at Bhopal Dhule Transmission Company Ltd since April 24, 2017. He worked with Larsen & Toubro Limited, L&T Infrastructure Finance Company Limited and Procter & Gamble International Operations Pte. Limited. He serves as a Director of Sterlite Investment Managers Limited, Maheshwaram Transmission Limited, Sterlite Grid 1 Limited, Purulia & Kharagpur Transmission Company Limited, RAPP Transmission Company Limited and Jabalpur Transmission Company Limited. He holds a Masters’ degree in Business Administration from the National University of Singapore and a bachelor’s degree in electrical engineering from the Nirma Institute of Technology, Gujarat University.
Insufficient data for Harsh to compare compensation growth.
Insufficient data for Harsh to establish whether their remuneration is reasonable compared to companies of similar size in India.
CEO & Whole-Time Director
Head of Finance & Compliance
Chief Operating Officer
Head of M&A and Investor Relations
Company Secretary & Compliance Officer
Head of Regulatory Affairs
Head of Business acquisitions
Chief Design Officer
Board of Directors
CEO & Whole-Time Director
Tarun Bhagwandass Kataria
Non-Executive Independent Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Is India Grid Trust (NSE:INDIGRID) A Sell At Its Current PE Ratio?
largely comparable to the 12.51x average multiple of the Electric Utilities? … But can investors make a closing judgement of the company’s value based on this multiple. … The answer is no, since important variables like the company’s potential to grow and debt levels are ignored in the PE’s calculation
Should You Be Holding India Grid Trust (NSE:INDIGRID)?
India Grid Trust (NSE:INDIGRID) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … Below, I've touched on some key aspects you should know on a high level
India Grid Trust operates as an infrastructure investment trust that owns inter-state power transmission assets in India. It owns a total circuit length of approximately 4,200 circuit kilometers and 4 substations with 7,735 mega volt ampere capacity in 10 states. The company was founded in 2016 and is based in New Delhi, India.
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