Garware Technical Fibres Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (12.9x coverage).
• Dividends per share have been stable in the past 10 years.

Cons

• Garware Technical Fibres's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Garware Technical Fibres's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Garware Technical Fibres is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Garware Technical Fibres is profitable, therefore cash runway is not a concern.
• Garware Technical Fibres is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (97.2%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 3.6x debt.
• Garware Technical Fibres's cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 18x coverage).
• Garware Technical Fibres's level of debt (21.1%) compared to net worth is satisfactory (less than 40%).

Cons

• The level of debt compared to net worth has increased over the past 5 years (15.7% vs 21.1% today).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Garware Technical Fibres board of directors is about average.
• Vayu's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

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

misc

Pros

Cons

• Garware Technical Fibres is not covered by any analysts.
• Garware Technical Fibres has significant price volatility in the past 3 months.

past

Pros

• Garware Technical Fibres's year on year earnings growth rate has been positive over the past 5 years.
• Garware Technical Fibres used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
• Garware Technical Fibres's earnings growth has exceeded the IN Luxury industry average in the past year (17.3% vs 8.3%).

Cons

• Garware Technical Fibres's 1-year earnings growth is less than its 5-year average (17.3% vs 19.9%)
• Garware Technical Fibres's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Garware Technical Fibres has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• 509557 outperformed the Luxury industry which returned -22.1% over the past year.
• 509557 outperformed the Market in India which returned -14.5% over the past year.

Cons

• Garware Technical Fibres's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Garware Technical Fibres's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Garware Technical Fibres is overvalued based on assets compared to the IN Luxury industry average.
• Garware Technical Fibres is overvalued based on earnings compared to the IN Luxury industry average.
• Garware Technical Fibres is overvalued based on earnings compared to the India market.
• BSE:509557 is flat (0.7%) underperforming the Luxury industry which returned 9.8% over the past month.
• BSE:509557 is flat (0.7%) underperforming the market in India which returned 8% over the past month.