AI Champdany Industries Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as AI Champdany Industries has not reported any payouts.
• Unable to evaluate AI Champdany Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate AI Champdany Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• AI Champdany Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• AI Champdany Industries is profitable, therefore cash runway is not a concern.
• AI Champdany Industries is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.4x debt.
• AI Champdany Industries's cash and other short term assets cover its long term commitments.

Cons

• Debt is not well covered by operating cash flow (0.9%, less than 20% of total debt).
• The level of debt compared to net worth has increased over the past 5 years (93.3% vs 191% today).
• Interest payments on debt are not well covered by earnings (EBIT is 0.7x annual interest expense, ideally 3x coverage).
• AI Champdany Industries's level of debt (191%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the AI Champdany Industries board of directors is about average.

Cons

• Nirmal's remuneration is higher than average for companies of similar size in India.
• Nirmal's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
• The average tenure for the AI Champdany Industries management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• AI Champdany Industries is not covered by any analysts.
• BSE:532806 has not traded for 6 days.

past

Pros

• AI Champdany Industries has delivered over 20% year on year earnings growth in the past 5 years.
• AI Champdany Industries has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• AI Champdany Industries's 1-year earnings growth is less than its 5-year average (4.7% vs 52.5%)
• AI Champdany Industries used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
• AI Champdany Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• AI Champdany Industries's earnings growth has not exceeded the IN Luxury industry average in the past year (4.7% vs 8.3%).

value

Pros

• AI Champdany Industries is good value based on assets compared to the IN Luxury industry average.

Cons

• AI Champdany Industries is overvalued based on earnings compared to the IN Luxury industry average.
• AI Champdany Industries is overvalued based on earnings compared to the India market.
• 532806 underperformed the Luxury industry which returned -22.1% over the past year.
• 532806 underperformed the Market in India which returned -14.5% over the past year.
• BSE:532806 is down -3.6% underperforming the Luxury industry which returned 9.8% over the past month.
• BSE:532806 is down -3.6% underperforming the market in India which returned 8% over the past month.