Balmer Lawrie & Company Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are covered by earnings (1.2x coverage).
• Dividends per share have been stable in the past 10 years.
• Balmer Lawrie's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Balmer Lawrie's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

health

Pros

• Balmer Lawrie is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Balmer Lawrie is profitable, therefore cash runway is not a concern.
• Balmer Lawrie is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (146.3%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 9.1x debt.
• Balmer Lawrie'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 (18.7% vs 9.1% today).
• Balmer Lawrie earns more interest than it pays, coverage of interest payments is not a concern.
• Balmer Lawrie's level of debt (9.1%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• Prabal's remuneration is lower than average for companies of similar size in India.
• Prabal's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Balmer Lawrie management team is about average.

Cons

• The average tenure for the Balmer Lawrie board of directors is less than 3 years, this suggests a new board.

misc

Pros

Cons

• Balmer Lawrie is not covered by any analysts.
• Balmer Lawrie has significant price volatility in the past 3 months.

past

Pros

• Balmer Lawrie used its assets more efficiently than the IN Industrials industry average last year based on Return on Assets.

Cons

• Balmer Lawrie's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Balmer Lawrie's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
• Balmer Lawrie's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Balmer Lawrie has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Balmer Lawrie's 1-year earnings growth is negative, it can't be compared to the IN Industrials industry average.

value

Pros

• BALMLAWRIE outperformed the Industrials industry which returned -19.9% over the past year.

Cons

• Balmer Lawrie's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Balmer Lawrie's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Balmer Lawrie is overvalued based on assets compared to the IN Industrials industry average.
• Balmer Lawrie is overvalued based on earnings compared to the IN Industrials industry average.
• Balmer Lawrie is overvalued based on earnings compared to the India market.
• BALMLAWRIE underperformed the Market in India which returned -14.5% over the past year.
• NSEI:BALMLAWRIE is up 2.6% underperforming the Industrials industry which returned 3.7% over the past month.
• NSEI:BALMLAWRIE is up 2.6% underperforming the market in India which returned 8% over the past month.