Arihant Capital Markets Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (14.4x coverage).
• Arihant Capital Markets's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

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

health

Pros

• Arihant Capital Markets is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Arihant Capital Markets is profitable, therefore cash runway is not a concern.
• Arihant Capital Markets is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 3.5x debt.
• Arihant Capital Markets's cash and other short term assets cover its long term commitments.
• Low level of unsold assets.

Cons

• Debt is not well covered by operating cash flow (4.6%, less than 20% of total debt).
• The level of debt compared to net worth has increased over the past 5 years (18.4% vs 56.2% today).
• Arihant Capital Markets's level of debt (56.2%) compared to net worth is high (greater than 40%).

management

Pros

• The average tenure for the Arihant Capital Markets board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Ashok's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

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

misc

Pros

Cons

• Arihant Capital Markets is not covered by any analysts.
• Arihant Capital Markets has significant price volatility in the past 3 months.

past

Pros

• Arihant Capital Markets's 1-year earnings growth exceeds its 5-year average (36% vs 18.5%)
• Arihant Capital Markets's year on year earnings growth rate has been positive over the past 5 years.
• Arihant Capital Markets used its assets more efficiently than the IN Capital Markets industry average last year based on Return on Assets.
• Arihant Capital Markets's earnings growth has exceeded the IN Capital Markets industry average in the past year (36% vs -4.7%).

Cons

• Arihant Capital Markets has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Arihant Capital Markets's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Arihant Capital Markets is good value based on earnings compared to the IN Capital Markets industry average.
• Arihant Capital Markets is good value based on earnings compared to the India market.
• BSE:511605 is up 31.6% outperforming the Capital Markets industry which returned 8.7% over the past month.
• BSE:511605 is up 31.6% outperforming the market in India which returned 8% over the past month.

Cons

• Arihant Capital Markets's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• Arihant Capital Markets is overvalued based on assets compared to the IN Capital Markets industry average.
• 511605 underperformed the Capital Markets industry which returned -21% over the past year.
• 511605 underperformed the Market in India which returned -14.5% over the past year.