Latest news with #TEA
Economic Times
a day ago
- Business
- Economic Times
Threading new ties: Surat and Tiruppur explore collaboration to boost India's MMF trade
Synopsis The collaboration will entail Tiruppur exporters setting up a few units in Surat to gain first-hand experience in MMF garment production, while Surat exporters will have the opportunity to learn the nuances of the export culture from Tiruppur. Surat is recognised as India's leading MMF manufacturing hub, while Tiruppur is widely known as the knitwear capital of the country. As geopolitical tensions and US tariffs affect the global supply chain, businesses across the world are looking at new strategies to navigate the disruptions in trade. Against this backdrop, industry associations from Tiruppur and Surat, two major textile clusters in India, are currently engaged in talks to explore mutual synergies that could enhance the man-made fibre (MMF) trade from the clusters are renowned for their expertise in distinct segments of the textile trade. Surat is recognised as India's leading MMF manufacturing hub, while Tiruppur is widely known as the knitwear capital of the country. Members from the Southern Gujarat Chamber of Commerce and Industry (SGCCI) in Surat are expected to visit Tiruppur between August and September this year to have a concrete discussion with the Tiruppur Exporters' Association (TEA) to deliberate further on the matter. 'It has been initiated, and the agenda of the MoU will be discussed during our visit,' said Ashish Gujarati, former president of SGCCI, in a conversation with ET Digital in Surat. 'We are hopeful of signing an agreement a few months after that,' he collaboration will entail Tiruppur exporters setting up a few units in Surat to gain first-hand experience in MMF garment production, while Surat exporters will have the opportunity to learn the nuances of the export culture from sources MMF fabric for the domestic market from Surat. Surat, conversely, has yet to establish its competence in export manufacturing. Register here for the Chandigarh summit on August 7According to Gujarati, such a collaboration can benefit the textile industry in India, not just for the clusters involved. 'It will benefit textile trade overall, not just for Tiruppur or Surat. It can be a 100% win-win; we have investors ready to collaborate with Tiruppur on this initiative,' he Duraiswamy, Joint Secretary of TEA, confirmed that discussions are in progress, noting that Tiruppur can support Surat in identifying markets, understanding buyer standards, and determining fabric requirements to meet international standards, among other aspects. 'These are nuances on which we can educate them. As far as we are concerned, we procure fabric for domestic manufacturing from Surat. It is about complementing each other; such mutual complementarity will benefit both sides,' he expects MMF exports to go up by 20-25% in the next few years if such collaborations pick up momentum. Currently, China leads in MMF production, with an estimated global market share of 72%. India is the second-largest producer, with MMF contributing 17% of India's total textile exports. Experts in the industry indicate that a collaboration between Surat and Tiruppur could lead to significant growth in the MMF sector nationwide. 'By improving product quality and variety, India can increase its share and reach a target of $100+ billion in exports and global MMF trade, currently dominated by China. Each participating cluster benefits from the exchange of specialised knowledge and expertise—for instance, Surat enhances its export-readiness, while Tiruppur gains access to advanced manufacturing techniques in MMF. It will also contribute to increasing value addition within the country, thereby reducing reliance on imports and optimising overall productivity across the textile value chain,' Kanishk Maheshwari, Co-founder & MD, Primus Partners, for these partnerships to be a success, there are certain on-the-ground challenges that must be addressed. Maheshwari noted that cross-regional partnerships face challenges due to lack of established communication platforms, competitive mindsets, and limited history of collaboration. 'Without structured facilitation, trust-building and joint decision-making become slow and inefficient,' he training and R&D centres should be developed, he said, with a focus on MMF textiles and garments. Besides this, facilitating access to technology, financial support for MSMEs, and cluster-specific policy initiatives can also help minimise the challenges that can say the success of this strategic collaboration could serve as a model for other clusters to emulate and learn from. This can pave the way for more innovative thinking in the textile domain. Addressing the challenges while leveraging strengths is crucial for positioning India as a key player in the global MMF apparel value chain.
Time of India
a day ago
- Business
- Time of India
Threading new ties: Surat and Tiruppur explore collaboration to boost India's MMF trade
Live Events Experts say the success of this strategic collaboration could serve as a model for other clusters to emulate and learn from. As geopolitical tensions and US tariffs affect the global supply chain, businesses across the world are looking at new strategies to navigate the disruptions in trade. Against this backdrop, industry associations from Tiruppur and Surat, two major textile clusters in India, are currently engaged in talks to explore mutual synergies that could enhance the man-made fibre (MMF) trade from the clusters are renowned for their expertise in distinct segments of the textile trade. Surat is recognised as India's leading MMF manufacturing hub, while Tiruppur is widely known as the knitwear capital of the from the Southern Gujarat Chamber of Commerce and Industry (SGCCI) in Surat are expected to visit Tiruppur between August and September this year to have a concrete discussion with the Tiruppur Exporters' Association (TEA) to deliberate further on the matter. 'It has been initiated, and the agenda of the MoU will be discussed during our visit,' said Ashish Gujarati , former president of SGCCI, in a conversation within Surat. 'We are hopeful of signing an agreement a few months after that,' he collaboration will entail Tiruppur exporters setting up a few units in Surat to gain first-hand experience in MMF garment production, while Surat exporters will have the opportunity to learn the nuances of the export culture from sources MMF fabric for the domestic market from Surat. Surat, conversely, has yet to establish its competence in export to Gujarati, such a collaboration can benefit the textile industry in India, not just for the clusters involved. 'It will benefit textile trade overall, not just for Tiruppur or Surat. It can be a 100% win-win; we have investors ready to collaborate with Tiruppur on this initiative,' he said. Kumar Duraiswamy , Joint Secretary of TEA, confirmed that discussions are in progress, noting that Tiruppur can support Surat in identifying markets, understanding buyer standards, and determining fabric requirements to meet international standards, among other aspects. 'These are nuances on which we can educate them. As far as we are concerned, we procure fabric for domestic manufacturing from Surat. It is about complementing each other; such mutual complementarity will benefit both sides,' he expects MMF exports to go up by 20-25% in the next few years if such collaborations pick up momentum. Currently, China leads in MMF production, with an estimated global market share of 72%. India is the second-largest producer, with MMF contributing 17% of India's total textile in the industry indicate that a collaboration between Surat and Tiruppur could lead to significant growth in the MMF sector nationwide. 'By improving product quality and variety, India can increase its share and reach a target of $100+ billion in exports and global MMF trade, currently dominated by China. Each participating cluster benefits from the exchange of specialised knowledge and expertise—for instance, Surat enhances its export-readiness, while Tiruppur gains access to advanced manufacturing techniques in MMF. It will also contribute to increasing value addition within the country, thereby reducing reliance on imports and optimising overall productivity across the textile value chain,' Kanishk Maheshwari, Co-founder & MD, Primus Partners, for these partnerships to be a success, there are certain on-the-ground challenges that must be addressed. Maheshwari noted that cross-regional partnerships face challenges due to lack of established communication platforms, competitive mindsets, and limited history of collaboration. 'Without structured facilitation, trust-building and joint decision-making become slow and inefficient,' he training and R&D centres should be developed, he said, with a focus on MMF textiles and garments. Besides this, facilitating access to technology, financial support for MSMEs, and cluster-specific policy initiatives can also help minimise the challenges that can say the success of this strategic collaboration could serve as a model for other clusters to emulate and learn from. This can pave the way for more innovative thinking in the textile domain. Addressing the challenges while leveraging strengths is crucial for positioning India as a key player in the global MMF apparel value chain.
IOL News
13-07-2025
- Business
- IOL News
Montclair Lodge purchased by KZN government for R33 million to accommodate evicted flood victims
The KZN government bought Montclair Lodge from Transnet for R33 million and plans to use its 268 rooms to house more than 100 flood victims who were evicted from their temporary shelter. Image: SIBONELO NGCOBO / Independent Newspapers The KwaZulu-Natal Department of Transport and Human Resources said it purchased the Montclair Lodge from Transnet for R33 million — the facility, which includes 268 rooms with a bed capacity of 600, will be repurposed to house over 150 evicted flood victims. The announcement was made by KZN MEC for Transport and Human Settlements Siboniso Duma 'We wish to announce that we have bought this facility, the Montclair Lodge, from Transnet,' Duma said. He confirmed that the official transfer of ownership took place on May 31, 2025. 'In other words, we will no longer use private facilities as part of the Temporary Emergency Accommodation (TEA),' he said. The announcement comes after more than 150 flood victims were evicted from the Bayside Hotel in Durban's city center due to the KwaZulu-Natal Department of Human Settlements' failure to make payments. The victims, who were originally displaced by devastating floods earlier this year, will now be temporarily housed at the Chesterville Community Hall. The department previously said R185 million has already been paid to various hotels for emergency accommodations. An additional R128 million is needed to accommodate 1,200 displaced individuals. Many of the affected victims have been without permanent housing since the April 2022 floods. They come from various parts of eThekwini. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Duma said the Montclair Lodge will be managed by the Housing Development Agency on behalf of the KZN Department of Human Settlements. 'A professional engineer will be appointed before the end of July 2025 to conduct a basic assessment, which will determine the scope of work for the refurbishment,' he said. The department has allocated R4.2 million for the assessment and a minimum of R35 million for refurbishment. A contractor will be appointed immediately after the assessment report is completed. Duma said it is anticipated that some flood victims will be able to occupy the lodge by December 2025 or January 2026. 'Our plan is to ensure that we are ready for heavy rainfall and flooding associated with the summer season,' he said. 'This milestone of a government-owned transitional emergency accommodation will drastically reduce the rent paid to privately owned transitional emergency accommodations.' IOL News
Yahoo
05-07-2025
- Business
- Yahoo
Calculating The Fair Value Of Tasmea Limited (ASX:TEA)
Using the 2 Stage Free Cash Flow to Equity, Tasmea fair value estimate is AU$3.55 With AU$3.51 share price, Tasmea appears to be trading close to its estimated fair value Analyst price target for TEA is AU$4.40, which is 24% above our fair value estimate How far off is Tasmea Limited (ASX:TEA) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF (A$, Millions) AU$64.5m AU$73.6m AU$53.0m AU$50.1m AU$48.7m AU$48.1m AU$48.1m AU$48.6m AU$49.3m AU$50.3m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x1 Est @ -5.43% Est @ -2.92% Est @ -1.16% Est @ 0.07% Est @ 0.94% Est @ 1.54% Est @ 1.96% Present Value (A$, Millions) Discounted @ 7.9% AU$59.8 AU$63.3 AU$42.2 AU$37.0 AU$33.3 AU$30.5 AU$28.3 AU$26.5 AU$24.9 AU$23.6 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$369m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.9%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.9%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = AU$50m× (1 + 2.9%) ÷ (7.9%– 2.9%) = AU$1.1b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$1.1b÷ ( 1 + 7.9%)10= AU$493m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is AU$863m. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of AU$3.5, the company appears about fair value at a 1.1% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Tasmea as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.9%, which is based on a levered beta of 1.136. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Tasmea Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings and cashflows. Weakness Dividend is low compared to the top 25% of dividend payers in the Construction market. Opportunity Annual earnings are forecast to grow faster than the Australian market. Current share price is below our estimate of fair value. Threat Dividends are not covered by cash flow. Revenue is forecast to grow slower than 20% per year. Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Tasmea, there are three relevant factors you should further examine: Risks: For instance, we've identified 2 warning signs for Tasmea that you should be aware of. Future Earnings: How does TEA's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the ASX every day. If you want to find the calculation for other stocks just search here. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
05-07-2025
- Business
- Yahoo
Calculating The Fair Value Of Tasmea Limited (ASX:TEA)
Using the 2 Stage Free Cash Flow to Equity, Tasmea fair value estimate is AU$3.55 With AU$3.51 share price, Tasmea appears to be trading close to its estimated fair value Analyst price target for TEA is AU$4.40, which is 24% above our fair value estimate How far off is Tasmea Limited (ASX:TEA) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF (A$, Millions) AU$64.5m AU$73.6m AU$53.0m AU$50.1m AU$48.7m AU$48.1m AU$48.1m AU$48.6m AU$49.3m AU$50.3m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x1 Est @ -5.43% Est @ -2.92% Est @ -1.16% Est @ 0.07% Est @ 0.94% Est @ 1.54% Est @ 1.96% Present Value (A$, Millions) Discounted @ 7.9% AU$59.8 AU$63.3 AU$42.2 AU$37.0 AU$33.3 AU$30.5 AU$28.3 AU$26.5 AU$24.9 AU$23.6 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$369m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.9%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.9%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = AU$50m× (1 + 2.9%) ÷ (7.9%– 2.9%) = AU$1.1b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$1.1b÷ ( 1 + 7.9%)10= AU$493m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is AU$863m. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of AU$3.5, the company appears about fair value at a 1.1% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Tasmea as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.9%, which is based on a levered beta of 1.136. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Tasmea Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings and cashflows. Weakness Dividend is low compared to the top 25% of dividend payers in the Construction market. Opportunity Annual earnings are forecast to grow faster than the Australian market. Current share price is below our estimate of fair value. Threat Dividends are not covered by cash flow. Revenue is forecast to grow slower than 20% per year. Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Tasmea, there are three relevant factors you should further examine: Risks: For instance, we've identified 2 warning signs for Tasmea that you should be aware of. Future Earnings: How does TEA's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the ASX every day. If you want to find the calculation for other stocks just search here. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
