Gujarat Alkalies & Chemicals Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (8.3x coverage).
• Dividends per share have been stable in the past 10 years.
• Gujarat Alkalies and Chemicals's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Gujarat Alkalies and Chemicals's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Gujarat Alkalies and Chemicals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Gujarat Alkalies and Chemicals is profitable, therefore cash runway is not a concern.
• Gujarat Alkalies and Chemicals is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (452.5%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 10x debt.
• Gujarat Alkalies and Chemicals'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 (7.1% vs 3.6% today).
• Gujarat Alkalies and Chemicals earns more interest than it pays, coverage of interest payments is not a concern.
• Gujarat Alkalies and Chemicals's level of debt (3.6%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• Prem's remuneration is lower than average for companies of similar size in India.
• Prem's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• The average tenure for the Gujarat Alkalies and Chemicals board of directors is less than 3 years, this suggests a new board.

misc

Pros

Cons

• Gujarat Alkalies and Chemicals is not covered by any analysts.
• Gujarat Alkalies and Chemicals has significant price volatility in the past 3 months.

past

Pros

• Gujarat Alkalies and Chemicals has delivered over 20% year on year earnings growth in the past 5 years.
• Gujarat Alkalies and Chemicals has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Gujarat Alkalies and Chemicals's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Gujarat Alkalies and Chemicals used its assets less efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Gujarat Alkalies and Chemicals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Gujarat Alkalies and Chemicals's 1-year earnings growth is negative, it can't be compared to the IN Chemicals industry average.

value

Pros

• Gujarat Alkalies and Chemicals's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Gujarat Alkalies and Chemicals's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Gujarat Alkalies and Chemicals is good value based on assets compared to the IN Chemicals industry average.
• Gujarat Alkalies and Chemicals is good value based on earnings compared to the IN Chemicals industry average.
• Gujarat Alkalies and Chemicals is good value based on earnings compared to the India market.
• NSEI:GUJALKALI is up 7.9% outperforming the Chemicals industry which returned 6.9% over the past month.
• NSEI:GUJALKALI is up 7.9% along with the India market (8%) over the past month.

Cons

• GUJALKALI underperformed the Chemicals industry which returned 2.2% over the past year.
• GUJALKALI underperformed the Market in India which returned -14.5% over the past year.