A.K.Capital Services Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (15.2x coverage).
• A. K. Capital Services's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends per share have fallen over the past 10 years.
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• A. K. Capital Services's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• A. K. Capital Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• A. K. Capital Services is profitable, therefore cash runway is not a concern.
• A. K. Capital Services is profitable, therefore cash runway is not a concern.
• Low level of unsold assets.

Cons

• Operating cash flow is negative therefore debt is not well covered.
• Debt is not covered by short term assets, assets are 0.3x debt.
• A. K. Capital Services's long term commitments exceed its cash and other short term assets.
• The level of debt compared to net worth has increased over the past 5 years (202.6% vs 230.6% today).
• Interest payments on debt are not well covered by earnings (EBIT is 1.6x annual interest expense, ideally 3x coverage).
• A. K. Capital Services's level of debt (230.6%) compared to net worth is high (greater than 40%).

management

Pros

• Atul's remuneration is lower than average for companies of similar size in India.
• Atul's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the A. K. Capital Services management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• The average tenure for the A. K. Capital Services board of directors is less than 3 years, this suggests a new board.

misc

Pros

Cons

• A. K. Capital Services is not covered by any analysts.

past

Pros

• A. K. Capital Services's year on year earnings growth rate has been positive over the past 5 years.
• A. K. Capital Services used its assets more efficiently than the IN Diversified Financial industry average last year based on Return on Assets.

Cons

• A. K. Capital Services's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• A. K. Capital Services's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• A. K. Capital Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• A. K. Capital Services's 1-year earnings growth is negative, it can't be compared to the IN Diversified Financial industry average.

value

Pros

• A. K. Capital Services's share price is below the future cash flow value, and at a moderate discount (> 20%).
• A. K. Capital Services's share price is below the future cash flow value, and at a substantial discount (> 40%).
• A. K. Capital Services is good value based on assets compared to the IN Diversified Financial industry average.
• A. K. Capital Services is good value based on earnings compared to the IN Diversified Financial industry average.
• A. K. Capital Services is good value based on earnings compared to the India market.
• 530499 outperformed the Diversified Financial industry which returned -37.3% over the past year.

Cons

• 530499 underperformed the Market in India which returned -14.5% over the past year.
• BSE:530499 is up 2.1% underperforming the Diversified Financial industry which returned 10.8% over the past month.
• BSE:530499 is up 2.1% underperforming the market in India which returned 8% over the past month.