Amarjothi Spinning Mills Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (8.2x coverage).
• Amarjothi Spinning Mills's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Amarjothi Spinning Mills's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

health

Pros

• Amarjothi Spinning Mills is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Amarjothi Spinning Mills is profitable, therefore cash runway is not a concern.
• Amarjothi Spinning Mills is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (136.6%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.2x debt.
• Amarjothi Spinning Mills's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (139.2% vs 58.1% today).
• Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).

Cons

• Amarjothi Spinning Mills's level of debt (58.1%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Amarjothi Spinning Mills board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Rajan's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Amarjothi Spinning Mills management team is about average.

Cons

• Rajan's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Amarjothi Spinning Mills is not covered by any analysts.

past

Pros

• Amarjothi Spinning Mills's 1-year earnings growth exceeds its 5-year average (43.5% vs -0.1%)
• Amarjothi Spinning Mills used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
• Amarjothi Spinning Mills's earnings growth has exceeded the IN Luxury industry average in the past year (43.5% vs 8.3%).

Cons

• Amarjothi Spinning Mills's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
• Amarjothi Spinning Mills's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Amarjothi Spinning Mills has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Amarjothi Spinning Mills's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Amarjothi Spinning Mills's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Amarjothi Spinning Mills is good value based on assets compared to the IN Luxury industry average.
• Amarjothi Spinning Mills is good value based on earnings compared to the IN Luxury industry average.
• Amarjothi Spinning Mills is good value based on earnings compared to the India market.
• BSE:521097 is up 11.1% outperforming the Luxury industry which returned 9.8% over the past month.
• BSE:521097 is up 11.1% outperforming the market in India which returned 8% over the past month.

Cons

• 521097 underperformed the Luxury industry which returned -22.1% over the past year.
• 521097 underperformed the Market in India which returned -14.5% over the past year.