Garden Reach Shipbuilders & Engineers Analysis

dividend

Pros

• Dividends paid are covered by earnings (2x coverage).
• Garden Reach Shipbuilders & Engineers's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Garden Reach Shipbuilders & Engineers's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Garden Reach Shipbuilders & Engineers only just started paying a dividend, it is too early to tell if payments are increasing.
• It is too early to tell whether Garden Reach Shipbuilders & Engineers has stable dividend payments.

health

Pros

• Garden Reach Shipbuilders & Engineers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Garden Reach Shipbuilders & Engineers is profitable, therefore cash runway is not a concern.
• Garden Reach Shipbuilders & Engineers is profitable, therefore cash runway is not a concern.
• Garden Reach Shipbuilders & Engineers has no debt, it does not need to be covered by operating cash flow.
• Garden Reach Shipbuilders & Engineers has no debt, it does not need to be covered by short term assets.
• Garden Reach Shipbuilders & Engineers's cash and other short term assets cover its long term commitments.
• Garden Reach Shipbuilders & Engineers currently has no debt however we can't compare to 5 years ago as we have no data for that period.
• Garden Reach Shipbuilders & Engineers has no debt, therefore coverage of interest payments is not a concern.
• Garden Reach Shipbuilders & Engineers has no debt.
• Low level of unsold assets.

Cons

management

Pros

• Vipin's remuneration is lower than average for companies of similar size in India.
• Vipin's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Garden Reach Shipbuilders & Engineers management team is about average.

Cons

• The average tenure for the Garden Reach Shipbuilders & Engineers board of directors is less than 3 years, this suggests a new board.

misc

Pros

Cons

• Garden Reach Shipbuilders & Engineers is not covered by any analysts.
• Garden Reach Shipbuilders & Engineers has significant price volatility in the past 3 months.

past

Pros

• Garden Reach Shipbuilders & Engineers's 1-year earnings growth exceeds its 5-year average (48.4% vs 15.3%)
• Garden Reach Shipbuilders & Engineers's year on year earnings growth rate has been positive over the past 5 years.
• Garden Reach Shipbuilders & Engineers has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).

Cons

• Garden Reach Shipbuilders & Engineers used its assets less efficiently than the IN Aerospace & Defense industry average last year based on Return on Assets.
• Garden Reach Shipbuilders & Engineers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Garden Reach Shipbuilders & Engineers's earnings growth has not exceeded the IN Aerospace & Defense industry average in the past year (48.4% vs 50.6%).

value

Pros

• Garden Reach Shipbuilders & Engineers's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Garden Reach Shipbuilders & Engineers's share price is below the future cash flow value, and at a substantial discount (> 40%).
• GRSE outperformed the Aerospace & Defense industry which returned -18.7% over the past year.
• GRSE outperformed the Market in India which returned -14.5% over the past year.
• NSEI:GRSE is up 28.1% outperforming the Aerospace & Defense industry which returned 14.2% over the past month.
• NSEI:GRSE is up 28.1% outperforming the market in India which returned 8% over the past month.

Cons

• Garden Reach Shipbuilders & Engineers is overvalued based on assets compared to the IN Aerospace & Defense industry average.
• Garden Reach Shipbuilders & Engineers is overvalued based on earnings compared to the IN Aerospace & Defense industry average.
• Garden Reach Shipbuilders & Engineers is overvalued based on earnings compared to the India market.