Deepak Fertilisers & Petrochemicals Corp Analysis

dividend

Pros

• Dividends paid are well covered by earnings (2.6x coverage).
• Deepak Fertilisers And Petrochemicals's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

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%).
• Deepak Fertilisers And Petrochemicals's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Deepak Fertilisers And Petrochemicals is profitable, therefore cash runway is not a concern.
• Deepak Fertilisers And Petrochemicals is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (45%, greater than 20% of total debt).
• Deepak Fertilisers And Petrochemicals's cash and other short term assets cover its long term commitments.

Cons

• Deepak Fertilisers And Petrochemicals'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 0.9x debt.
• The level of debt compared to net worth has increased over the past 5 years (87.1% vs 135.9% today).
• Interest payments on debt are not well covered by earnings (EBIT is 1.1x annual interest expense, ideally 3x coverage).
• Deepak Fertilisers And Petrochemicals's level of debt (135.9%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Deepak Fertilisers And Petrochemicals board of directors is about average.
• Sailesh's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• Sailesh's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Deepak Fertilisers And Petrochemicals is not covered by any analysts.
• Deepak Fertilisers And Petrochemicals has significant price volatility in the past 3 months.

past

Pros

Cons

• Deepak Fertilisers And Petrochemicals's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Deepak Fertilisers And Petrochemicals's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
• Deepak Fertilisers And Petrochemicals used its assets less efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Deepak Fertilisers And Petrochemicals's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Deepak Fertilisers And Petrochemicals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Deepak Fertilisers And Petrochemicals's 1-year earnings growth is negative, it can't be compared to the IN Chemicals industry average.

value

Pros

• Deepak Fertilisers And Petrochemicals's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Deepak Fertilisers And Petrochemicals's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Deepak Fertilisers And Petrochemicals is good value based on assets compared to the IN Chemicals industry average.
• 500645 outperformed the Market in India which returned -14.5% over the past year.
• BSE:500645 is up 9.4% outperforming the Chemicals industry which returned 6.9% over the past month.
• BSE:500645 is up 9.4% outperforming the market in India which returned 8% over the past month.

Cons

• Deepak Fertilisers And Petrochemicals is overvalued based on earnings compared to the IN Chemicals industry average.
• Deepak Fertilisers And Petrochemicals is overvalued based on earnings compared to the India market.
• 500645 underperformed the Chemicals industry which returned 2.2% over the past year.