Caprolactam Chemicals Analysis

dividend

Pros

Cons

• Unable to evaluate Caprolactam Chemicals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Caprolactam Chemicals's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Caprolactam Chemicals is profitable, therefore cash runway is not a concern.
• Caprolactam Chemicals is profitable, therefore cash runway is not a concern.
• Caprolactam Chemicals's cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 9.5x coverage).

Cons

• Caprolactam Chemicals's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Debt is not covered by short term assets, assets are 0.6x debt.
• The level of debt compared to net worth has increased over the past 5 years (61.3% vs 64.6% today).
• Caprolactam Chemicals's level of debt (64.6%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Caprolactam Chemicals board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Zaver's remuneration is lower than average for companies of similar size in India.
• Zaver's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

misc

Pros

Cons

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

past

Pros

• Caprolactam Chemicals's 1-year earnings growth exceeds its 5-year average (3066.8% vs 38.3%)
• Caprolactam Chemicals has delivered over 20% year on year earnings growth in the past 5 years.
• Caprolactam Chemicals used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Caprolactam Chemicals 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).
• Caprolactam Chemicals made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
• Caprolactam Chemicals's earnings growth has exceeded the IN Chemicals industry average in the past year (3066.8% vs 9.1%).

Cons

value

Pros

• Caprolactam Chemicals is good value based on earnings compared to the IN Chemicals industry average.
• Caprolactam Chemicals is good value based on earnings compared to the India market.
• 507486 outperformed the Chemicals industry which returned 2.2% over the past year.
• 507486 outperformed the Market in India which returned -14.5% over the past year.
• BSE:507486 is up 33.8% outperforming the Chemicals industry which returned 6.9% over the past month.
• BSE:507486 is up 33.8% outperforming the market in India which returned 8% over the past month.

Cons

• Caprolactam Chemicals is overvalued based on assets compared to the IN Chemicals industry average.