Chambal Fertilisers & Chemicals Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (14.7x coverage).
• Dividends per share have been stable in the past 10 years.
• Chambal Fertilisers and Chemicals's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Chambal Fertilisers and Chemicals's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Chambal Fertilisers and Chemicals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Chambal Fertilisers and Chemicals is profitable, therefore cash runway is not a concern.
• Chambal Fertilisers and Chemicals is profitable, therefore cash runway is not a concern.
• Chambal Fertilisers and Chemicals's cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).

Cons

• Debt is not well covered by operating cash flow (8.8%, less than 20% of total debt).
• Debt is not covered by short term assets, assets are 0.8x debt.
• The level of debt compared to net worth has increased over the past 5 years (178.7% vs 273.6% today).
• Chambal Fertilisers and Chemicals's level of debt (273.6%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• Anil's compensation has been consistent with company performance over the past year, both up more than 20%.
• More shares have been bought than sold by Chambal Fertilisers and Chemicals individual insiders in the past 3 months.
• The average tenure for the Chambal Fertilisers and Chemicals management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• The average tenure for the Chambal Fertilisers and Chemicals board of directors is less than 3 years, this suggests a new board.
• Anil's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

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

past

Pros

• Chambal Fertilisers and Chemicals's 1-year earnings growth exceeds its 5-year average (107.9% vs 23.3%)
• Chambal Fertilisers and Chemicals has delivered over 20% year on year earnings growth in the past 5 years.
• Chambal Fertilisers and Chemicals used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Chambal Fertilisers and Chemicals has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Chambal Fertilisers and Chemicals's earnings growth has exceeded the IN Chemicals industry average in the past year (107.9% vs 9.1%).

Cons

• Whilst Chambal Fertilisers and Chemicals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.

value

Pros

• Chambal Fertilisers and Chemicals is good value based on earnings compared to the IN Chemicals industry average.
• Chambal Fertilisers and Chemicals is good value based on earnings compared to the India market.

Cons

• Chambal Fertilisers and Chemicals's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Chambal Fertilisers and Chemicals's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Chambal Fertilisers and Chemicals is overvalued based on assets compared to the IN Chemicals industry average.
• CHAMBLFERT underperformed the Chemicals industry which returned 2.2% over the past year.
• CHAMBLFERT underperformed the Market in India which returned -14.5% over the past year.
• NSEI:CHAMBLFERT is up 2.4% underperforming the Chemicals industry which returned 6.9% over the past month.
• NSEI:CHAMBLFERT is up 2.4% underperforming the market in India which returned 8% over the past month.