Godfrey Phillips India Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (7.6x coverage).
• Dividends per share have been stable in the past 10 years.
• Godfrey Phillips India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Godfrey Phillips India's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Godfrey Phillips India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Godfrey Phillips India is profitable, therefore cash runway is not a concern.
• Godfrey Phillips India is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (809.5%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 25.8x debt.
• Godfrey Phillips 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 (20.8% vs 2.2% today).
• Interest payments on debt are well covered by earnings (EBIT is 25.6x coverage).
• Godfrey Phillips India's level of debt (2.2%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Godfrey Phillips India board of directors is about average.
• Bhisham's remuneration is lower than average for companies of similar size in India.
• Bhisham's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the Godfrey Phillips India management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

misc

Pros

Cons

• Godfrey Phillips India is not covered by any analysts.

past

Pros

• Godfrey Phillips India's 1-year earnings growth exceeds its 5-year average (67.6% vs 18.3%)
• Godfrey Phillips India's year on year earnings growth rate has been positive over the past 5 years.
• Godfrey Phillips India used its assets more efficiently than the IN Tobacco industry average last year based on Return on Assets.
• Godfrey Phillips India has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Godfrey Phillips India's earnings growth has exceeded the Asia Tobacco industry average in the past year (67.6% vs -1.2%).

Cons

• Godfrey Phillips India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Godfrey Phillips India is good value based on assets compared to the IN Tobacco industry average.
• Godfrey Phillips India is good value based on earnings compared to the IN Tobacco industry average.
• 500163 outperformed the Tobacco industry which returned -29.8% over the past year.
• 500163 outperformed the Market in India which returned -14.5% over the past year.

Cons

• Godfrey Phillips India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Godfrey Phillips India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Godfrey Phillips India is overvalued based on earnings compared to the India market.
• BSE:500163 is flat (-1%) underperforming the Tobacco industry which returned 13.1% over the past month.
• BSE:500163 is flat (-1%) underperforming the market in India which returned 8% over the past month.