Grauer & Weil (India) Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (5x coverage).
• Grauer & Weil (India)'s pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Grauer & Weil (India)'s dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Grauer & Weil (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Grauer & Weil (India) is profitable, therefore cash runway is not a concern.
• Grauer & Weil (India) is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (1170%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 68.3x debt.
• Grauer & Weil (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 (34.8% vs 1.1% today).
• Grauer & Weil (India) earns more interest than it pays, coverage of interest payments is not a concern.
• Grauer & Weil (India)'s level of debt (1.1%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Grauer & Weil (India) board of directors is about average.
• Vinod's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Grauer & Weil (India) management team is about average.

Cons

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

misc

Pros

Cons

• Grauer & Weil (India) is not covered by any analysts.

past

Pros

• Grauer & Weil (India)'s year on year earnings growth rate has been positive over the past 5 years.
• Grauer & Weil (India) used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.

Cons

• Grauer & Weil (India)'s 1-year earnings growth is less than its 5-year average (7.2% vs 11.7%)
• Grauer & Weil (India)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Grauer & Weil (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Grauer & Weil (India)'s earnings growth has not exceeded the IN Chemicals industry average in the past year (7.2% vs 9.1%).

value

Pros

• BSE:505710 is up 9.1% outperforming the Chemicals industry which returned 6.9% over the past month.
• BSE:505710 is up 9.1% outperforming the market in India which returned 8% over the past month.

Cons

• Grauer & Weil (India)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Grauer & Weil (India)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Grauer & Weil (India) is overvalued based on assets compared to the IN Chemicals industry average.
• Grauer & Weil (India) is overvalued based on earnings compared to the IN Chemicals industry average.
• Grauer & Weil (India) is overvalued based on earnings compared to the India market.
• 505710 underperformed the Chemicals industry which returned 2.2% over the past year.
• 505710 underperformed the Market in India which returned -14.5% over the past year.