Aravali Securities & Finance Analysis

dividend

Pros

Cons

• Unable to evaluate Aravali Securities & Finance's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Aravali Securities & Finance's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Aravali Securities & Finance is profitable, therefore cash runway is not a concern.
• Aravali Securities & Finance is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (20.6%, greater than 20% of total debt).
• Aravali Securities & Finance has no long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 11.4x coverage).

Cons

• Aravali Securities & Finance's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Aravali Securities & Finance has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
• Irrelevant to check if Aravali Securities & Finance's debt level has increased considering it has negative shareholder equity.
• Aravali Securities & Finance has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
• High level of physical assets or inventory.

management

Pros

• The tenure for the Aravali Securities & Finance board of directors is about average.

Cons

misc

Pros

Cons

• Aravali Securities & Finance is not covered by any analysts.
• Aravali Securities & Finance has significant price volatility in the past 3 months.

past

Pros

• Aravali Securities & Finance has delivered over 20% year on year earnings growth in the past 5 years.
• Aravali Securities & Finance used its assets more efficiently than the IN Capital Markets industry average last year based on Return on Assets.

Cons

• Aravali Securities & Finance has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
• It is difficult to establish if Aravali Securities & Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.
• It is difficult to establish if Aravali Securities & Finance has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
• Aravali Securities & Finance has become profitable in the last year making it difficult to compare the IN Capital Markets industry average.

value

Pros

• Aravali Securities & Finance's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Aravali Securities & Finance's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Aravali Securities & Finance is good value based on earnings compared to the IN Capital Markets industry average.
• Aravali Securities & Finance is good value based on earnings compared to the India market.

Cons

• Aravali Securities & Finance has negative assets, we can't compare the value of its assets to the IN Capital Markets industry average.
• BSE:512344 is down -13.7% underperforming the Capital Markets industry which returned 8.7% over the past month.
• BSE:512344 is down -13.7% underperforming the market in India which returned 8% over the past month.