Dr Agarwals Eye Hospital Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (19.4x coverage).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Dr. Agarwal's Eye Hospital's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Dr. Agarwal's Eye Hospital's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Dr. Agarwal's Eye Hospital is profitable, therefore cash runway is not a concern.
• Dr. Agarwal's Eye Hospital is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (291.7%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 2.2x debt.
• The level of debt compared to net worth has been reduced over the past 5 years (114.1% vs 23.6% today).
• Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).
• Dr. Agarwal's Eye Hospital's level of debt (23.6%) compared to net worth is satisfactory (less than 40%).

Cons

• Dr. Agarwal's Eye Hospital's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Dr. Agarwal's Eye Hospital's long term commitments exceed its cash and other short term assets.
• High level of physical assets or inventory.

management

Pros

• The tenure for the Dr. Agarwal's Eye Hospital board of directors is about average.
• The tenure for the Dr. Agarwal's Eye Hospital management team is about average.

Cons

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

misc

Pros

Cons

• Dr. Agarwal's Eye Hospital is not covered by any analysts.
• Dr. Agarwal's Eye Hospital has significant price volatility in the past 3 months.

past

Pros

• Dr. Agarwal's Eye Hospital has delivered over 20% year on year earnings growth in the past 5 years.
• Dr. Agarwal's Eye Hospital used its assets more efficiently than the IN Healthcare industry average last year based on Return on Assets.
• Dr. Agarwal's Eye Hospital has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• Dr. Agarwal's Eye Hospital's earnings growth has exceeded the IN Healthcare industry average in the past year (14.9% vs 14.4%).

Cons

• Dr. Agarwal's Eye Hospital's 1-year earnings growth is less than its 5-year average (14.9% vs 30.1%)
• Dr. Agarwal's Eye Hospital's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

value

Pros

• Dr. Agarwal's Eye Hospital's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Dr. Agarwal's Eye Hospital's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Dr. Agarwal's Eye Hospital is good value based on earnings compared to the IN Healthcare industry average.
• Dr. Agarwal's Eye Hospital is good value based on earnings compared to the India market.
• 526783 matched the India Market (-14.5%) over the past year.
• BSE:526783 is up 24.3% outperforming the Healthcare industry which returned 5.4% over the past month.
• BSE:526783 is up 24.3% outperforming the market in India which returned 8% over the past month.

Cons

• Dr. Agarwal's Eye Hospital is overvalued based on assets compared to the IN Healthcare industry average.
• 526783 underperformed the Healthcare industry which returned 9.1% over the past year.