Dwarikesh Sugar Industries Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (3.9x coverage).
• Dwarikesh Sugar Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Dwarikesh Sugar 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%).

health

Pros

• Dwarikesh Sugar Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Dwarikesh Sugar Industries is profitable, therefore cash runway is not a concern.
• Dwarikesh Sugar Industries is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.7x debt.
• Dwarikesh Sugar 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 (599.4% vs 135.3% today).
• Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).

Cons

• Debt is not well covered by operating cash flow (1.7%, less than 20% of total debt).
• Dwarikesh Sugar Industries's level of debt (135.3%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Dwarikesh Sugar Industries board of directors is about average.
• Balkishan's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• Balkishan's remuneration is higher than average for companies of similar size in India.
• The average tenure for the Dwarikesh Sugar Industries management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

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

past

Pros

• Dwarikesh Sugar Industries has delivered over 20% year on year earnings growth in the past 5 years.

Cons

• Dwarikesh Sugar Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Dwarikesh Sugar Industries used its assets less efficiently than the IN Food industry average last year based on Return on Assets.
• Dwarikesh Sugar Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Dwarikesh Sugar Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Dwarikesh Sugar Industries's 1-year earnings growth is negative, it can't be compared to the IN Food industry average.

value

Pros

• Dwarikesh Sugar Industries is good value based on earnings compared to the IN Food industry average.
• Dwarikesh Sugar Industries is good value based on earnings compared to the India market.
• 532610 outperformed the Market in India which returned -14.5% over the past year.
• BSE:532610 is up 46.6% outperforming the Food industry which returned 5% over the past month.
• BSE:532610 is up 46.6% outperforming the market in India which returned 8% over the past month.

Cons

• Dwarikesh Sugar Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Dwarikesh Sugar Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Dwarikesh Sugar Industries is overvalued based on assets compared to the IN Food industry average.
• 532610 underperformed the Food industry which returned 18.8% over the past year.