Dredging Corporation of India Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (14.4x coverage).
• Dredging Corporation of India'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%).
• Dredging Corporation of India's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Dredging Corporation of India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Dredging Corporation of India is profitable, therefore cash runway is not a concern.
• Dredging Corporation of India is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (25.2%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.2x debt.
• Dredging Corporation of India'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 (78.3% vs 37.9% today).
• Interest payments on debt are well covered by earnings (EBIT is 12.8x coverage).
• Dredging Corporation of India's level of debt (37.9%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• Rajesh's compensation has increased in line with Dredging Corporation of India recently becoming profitable.

Cons

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

misc

Pros

Cons

• Dredging Corporation of India is not covered by any analysts.
• Dredging Corporation of India has significant price volatility in the past 3 months.

past

Pros

• Dredging Corporation of India has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Dredging Corporation of India has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
• Dredging Corporation of India's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
• Dredging Corporation of India used its assets less efficiently than the IN Infrastructure industry average last year based on Return on Assets.
• Dredging Corporation of India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Dredging Corporation of India has become profitable in the last year making it difficult to compare the IN Infrastructure industry average.

value

Pros

• Dredging Corporation of India's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Dredging Corporation of India's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Dredging Corporation of India is good value based on earnings compared to the IN Infrastructure industry average.
• Dredging Corporation of India is good value based on earnings compared to the India market.

Cons

• Dredging Corporation of India is overvalued based on assets compared to the IN Infrastructure industry average.
• 523618 underperformed the Infrastructure industry which returned -20.5% over the past year.
• 523618 underperformed the Market in India which returned -14.5% over the past year.
• BSE:523618 is up 2.2% underperforming the Infrastructure industry which returned 11% over the past month.
• BSE:523618 is up 2.2% underperforming the market in India which returned 8% over the past month.