Golkunda Diamonds & Jewellery Analysis

dividend

Pros

• Dividends paid are well covered by earnings (4.1x coverage).
• Golkunda Diamonds & Jewellery's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Golkunda Diamonds & Jewellery's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividend payments have increased, but Golkunda Diamonds & Jewellery only paid a dividend in the past 9 years.
• Golkunda Diamonds & Jewellery has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

health

Pros

• Golkunda Diamonds & Jewellery is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Golkunda Diamonds & Jewellery is profitable, therefore cash runway is not a concern.
• Golkunda Diamonds & Jewellery is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (21%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 2.2x debt.
• Golkunda Diamonds & Jewellery'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 (167.3% vs 93.6% today).
• Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).

Cons

• Golkunda Diamonds & Jewellery's level of debt (93.6%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Golkunda Diamonds & Jewellery board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Kanti's remuneration is lower than average for companies of similar size in India.
• Kanti's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

misc

Pros

Cons

• Golkunda Diamonds & Jewellery is not covered by any analysts.
• Golkunda Diamonds & Jewellery has significant price volatility in the past 3 months.

past

Pros

• Golkunda Diamonds & Jewellery's 1-year earnings growth exceeds its 5-year average (71.6% vs -18.1%)
• Golkunda Diamonds & Jewellery's earnings growth has exceeded the IN Luxury industry average in the past year (71.6% vs 8.3%).

Cons

• Golkunda Diamonds & Jewellery's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
• Golkunda Diamonds & Jewellery used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
• Golkunda Diamonds & Jewellery's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Golkunda Diamonds & Jewellery has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Golkunda Diamonds & Jewellery's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Golkunda Diamonds & Jewellery's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Golkunda Diamonds & Jewellery is good value based on assets compared to the IN Luxury industry average.
• Golkunda Diamonds & Jewellery is good value based on earnings compared to the IN Luxury industry average.
• Golkunda Diamonds & Jewellery is good value based on earnings compared to the India market.
• 523676 outperformed the Luxury industry which returned -22.1% over the past year.
• 523676 outperformed the Market in India which returned -14.5% over the past year.

Cons

• BSE:523676 is down -7.6% underperforming the Luxury industry which returned 9.8% over the past month.
• BSE:523676 is down -7.6% underperforming the market in India which returned 8% over the past month.