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CMI Ltd

NSE: CMICABLES BSE: 517330

4.43

(-2.21%)

Fri, 06 Mar 2026, 11:37 am

CMI Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (21x coverage).
  • CMI's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • CMI's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • CMI has only been paying a dividend for 4 years, and since then dividends per share have fallen.
  • CMI has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

health

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Pros

  • CMI is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • CMI is profitable, therefore cash runway is not a concern.
  • CMI is profitable, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 1.8x debt.
  • CMI'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 (140% vs 87.2% today).
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Cons

  • Debt is not well covered by operating cash flow (12.9%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).
  • CMI's level of debt (87.2%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • Amit'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 CMI individual insiders in the past 3 months.
  • The average tenure for the CMI management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

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

misc

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Pros

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    Cons

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

    past

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    Pros

    • CMI's 1-year earnings growth exceeds its 5-year average (22% vs 5.4%)
    • CMI's year on year earnings growth rate has been positive over the past 5 years.
    • CMI used its assets more efficiently than the IN Electrical industry average last year based on Return on Assets.
    • CMI's earnings growth has exceeded the IN Electrical industry average in the past year (22% vs 11.7%).
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    Cons

    • CMI's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • CMI has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • CMI's share price is below the future cash flow value, and at a moderate discount (> 20%).
    • CMI's share price is below the future cash flow value, and at a substantial discount (> 40%).
    • CMI is good value based on assets compared to the IN Electrical industry average.
    • CMI is good value based on earnings compared to the IN Electrical industry average.
    • CMI is good value based on earnings compared to the India market.
    • NSEI:CMICABLES is up 33.6% outperforming the Electrical industry which returned 9.3% over the past month.
    • NSEI:CMICABLES is up 33.6% outperforming the market in India which returned 8% over the past month.
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    Cons

    • CMICABLES underperformed the Electrical industry which returned -33.5% over the past year.
    • CMICABLES underperformed the Market in India which returned -14.5% over the past year.

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    Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800