Bengal Tea & Fabrics Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Bengal Tea & Fabrics has not reported any payouts.
• Unable to evaluate Bengal Tea & Fabrics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Bengal Tea & Fabrics's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Bengal Tea & Fabrics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Bengal Tea & Fabrics is profitable, therefore cash runway is not a concern.
• Bengal Tea & Fabrics is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (21.1%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 3.4x debt.
• Bengal Tea & Fabrics'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 (112.4% vs 19.1% today).
• Bengal Tea & Fabrics's level of debt (19.1%) compared to net worth is satisfactory (less than 40%).

Cons

• Interest payments on debt are not well covered by earnings (EBIT is 1x annual interest expense, ideally 3x coverage).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Bengal Tea & Fabrics board of directors is about average.
• Adarsh's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the Bengal Tea & Fabrics management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

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

misc

Pros

Cons

• Bengal Tea & Fabrics is not covered by any analysts.
• Bengal Tea & Fabrics has significant price volatility in the past 3 months.

past

Pros

• Bengal Tea & Fabrics 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).

Cons

• Bengal Tea & Fabrics's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Bengal Tea & Fabrics's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
• Bengal Tea & Fabrics used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
• Bengal Tea & Fabrics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Bengal Tea & Fabrics's 1-year earnings growth is negative, it can't be compared to the IN Luxury industry average.

value

Pros

• Bengal Tea & Fabrics is good value based on assets compared to the IN Luxury industry average.

Cons

• Bengal Tea & Fabrics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Bengal Tea & Fabrics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Bengal Tea & Fabrics is overvalued based on earnings compared to the IN Luxury industry average.
• Bengal Tea & Fabrics is overvalued based on earnings compared to the India market.
• 532230 underperformed the Luxury industry which returned -22.1% over the past year.
• 532230 underperformed the Market in India which returned -14.5% over the past year.
• BSE:532230 is down -9.5% underperforming the Luxury industry which returned 9.8% over the past month.
• BSE:532230 is down -9.5% underperforming the market in India which returned 8% over the past month.