Borosil Renewables Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (7.4x coverage).

Cons

• Dividends per share have fallen over the past 10 years.
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Borosil Renewables's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Borosil Renewables's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Borosil Renewables is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Borosil Renewables is profitable, therefore cash runway is not a concern.
• Borosil Renewables is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 2.8x debt.
• Borosil Renewables's cash and other short term assets cover its long term commitments.
• Borosil Renewables earns more interest than it pays, coverage of interest payments is not a concern.
• Borosil Renewables's level of debt (19.1%) compared to net worth is satisfactory (less than 40%).

Cons

• Operating cash flow is negative therefore debt is not well covered.
• The level of debt compared to net worth has increased over the past 5 years (3.7% vs 19.1% today).
• High level of physical assets or inventory.

management

Pros

• Ramaswami's remuneration is lower than average for companies of similar size in India.

Cons

• The average tenure for the Borosil Renewables board of directors is less than 3 years, this suggests a new board.
• Ramaswami's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
• The average tenure for the Borosil Renewables management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

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

past

Pros

• Borosil Renewables's 1-year earnings growth exceeds its 5-year average (2.6% vs -0.4%)
• Borosil Renewables used its assets more efficiently than the IN Semiconductor industry average last year based on Return on Assets.
• Borosil Renewables has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Borosil Renewables's earnings growth has exceeded the Asia Semiconductor industry average in the past year (2.6% vs -3.8%).

Cons

• Borosil Renewables's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
• Borosil Renewables has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• BSE:502219 is up 173.3% outperforming the Semiconductor industry which returned 121.4% over the past month.
• BSE:502219 is up 173.3% outperforming the market in India which returned 8% over the past month.

Cons

• Borosil Renewables's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Borosil Renewables's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Borosil Renewables is overvalued based on assets compared to the IN Semiconductor industry average.
• Borosil Renewables is overvalued based on earnings compared to the IN Semiconductor industry average.
• Borosil Renewables is overvalued based on earnings compared to the India market.
• 502219 underperformed the Semiconductor industry which returned -38.9% over the past year.
• 502219 underperformed the Market in India which returned -14.5% over the past year.