Bajaj Steel Industries Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (21.2x coverage).
• Bajaj Steel Industries'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%).
• Bajaj Steel Industries's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Bajaj Steel Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Bajaj Steel Industries is profitable, therefore cash runway is not a concern.
• Bajaj Steel Industries is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 3x debt.
• Bajaj Steel Industries'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 (117.6% vs 82.2% today).
• Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).

Cons

• Debt is not well covered by operating cash flow (18.9%, less than 20% of total debt).
• Bajaj Steel Industries's level of debt (82.2%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Bajaj Steel Industries board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Mahendra's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the Bajaj Steel Industries management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

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

misc

Pros

Cons

• Bajaj Steel Industries is not covered by any analysts.

past

Pros

• Bajaj Steel Industries's 1-year earnings growth exceeds its 5-year average (51.2% vs 46.4%)
• Bajaj Steel Industries has delivered over 20% year on year earnings growth in the past 5 years.
• Bajaj Steel Industries used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.
• Bajaj Steel Industries has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
• Bajaj Steel Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• Bajaj Steel Industries's earnings growth has exceeded the IN Machinery industry average in the past year (51.2% vs -7.2%).

Cons

value

Pros

• Bajaj Steel Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Bajaj Steel Industries is good value based on assets compared to the IN Machinery industry average.
• Bajaj Steel Industries is good value based on earnings compared to the IN Machinery industry average.
• Bajaj Steel Industries is good value based on earnings compared to the India market.
• 507944 outperformed the Machinery industry which returned -23.7% over the past year.
• BSE:507944 is up 10.9% outperforming the Machinery industry which returned 8.3% over the past month.
• BSE:507944 is up 10.9% outperforming the market in India which returned 8% over the past month.

Cons

• Bajaj Steel Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• 507944 underperformed the Market in India which returned -14.5% over the past year.