Dalmia Bharat Sugar & Industries Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (13.5x coverage).
• Dalmia Bharat Sugar and Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Dalmia Bharat Sugar and Industries's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

Pros

• Dalmia Bharat Sugar and Industries's earnings are expected to exceed the low risk growth rate next year.

Cons

• Dalmia Bharat Sugar and Industries's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
• Dalmia Bharat Sugar and Industries's earnings growth is positive but not above the India market average.
• Dalmia Bharat Sugar and Industries's earnings growth is positive but not above the low risk savings rate of 7.2%.
• Dalmia Bharat Sugar and Industries's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
• Dalmia Bharat Sugar and Industries's revenue growth is positive but not above the India market average.

health

Pros

• Dalmia Bharat Sugar and Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Dalmia Bharat Sugar and Industries is profitable, therefore cash runway is not a concern.
• Dalmia Bharat Sugar and Industries is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.5x debt.
• Dalmia Bharat Sugar and Industries'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 (195.9% vs 47.7% today).

Cons

• Operating cash flow is negative therefore debt is not well covered.
• Interest payments on debt are not well covered by earnings (EBIT is 2.8x annual interest expense, ideally 3x coverage).
• Dalmia Bharat Sugar and Industries's level of debt (47.7%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Dalmia Bharat Sugar and Industries board of directors is about average.
• The tenure for the Dalmia Bharat Sugar and Industries management team is about average.

Cons

• Gautam's remuneration is higher than average for companies of similar size in India.
• Gautam's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.

misc

Pros

Cons

• Dalmia Bharat Sugar and Industries is covered by less than 3 analysts.
• Dalmia Bharat Sugar and Industries has significant price volatility in the past 3 months.

past

Pros

• Dalmia Bharat Sugar and Industries has delivered over 20% year on year earnings growth in the past 5 years.
• Dalmia Bharat Sugar and Industries used its assets more efficiently than the IN Food industry average last year based on Return on Assets.

Cons

• Dalmia Bharat Sugar and Industries's 1-year earnings growth is less than its 5-year average (7.6% vs 25%)
• Dalmia Bharat Sugar and Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Dalmia Bharat Sugar and Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Dalmia Bharat Sugar and Industries's earnings growth has not exceeded the IN Food industry average in the past year (7.6% vs 20.5%).

value

Pros

• Dalmia Bharat Sugar and Industries is good value based on assets compared to the IN Food industry average.
• Dalmia Bharat Sugar and Industries is good value based on earnings compared to the IN Food industry average.
• Dalmia Bharat Sugar and Industries is good value based on earnings compared to the India market.
• 500097 outperformed the Market in India which returned -14.5% over the past year.
• BSE:500097 is up 67.5% outperforming the Food industry which returned 5% over the past month.
• BSE:500097 is up 67.5% outperforming the market in India which returned 8% over the past month.

Cons

• Dalmia Bharat Sugar and Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Dalmia Bharat Sugar and Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Dalmia Bharat Sugar and Industries is poor value based on expected growth next year.
• 500097 underperformed the Food industry which returned 18.8% over the past year.