Gujarat Containers Analysis

dividend

Pros

Cons

• Unable to evaluate Gujarat Containers's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Gujarat Containers's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Gujarat Containers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Gujarat Containers is profitable, therefore cash runway is not a concern.
• Gujarat Containers is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.4x debt.
• Gujarat Containers's cash and other short term assets cover its long term commitments.

Cons

• Operating cash flow is negative therefore debt is not well covered.
• The level of debt compared to net worth has increased over the past 5 years (108.3% vs 186.6% today).
• Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).
• Gujarat Containers's level of debt (186.6%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Gujarat Containers board of directors is about average.
• Kiran's remuneration is lower than average for companies of similar size in India.
• Kiran's compensation has been consistent with company performance over the past year, both up more than 20%.
• More shares have been bought than sold by Gujarat Containers individual insiders in the past 3 months.

Cons

misc

Pros

Cons

• Gujarat Containers is not covered by any analysts.
• BSE:513507 has not traded for 60 days.

past

Pros

• Gujarat Containers's 1-year earnings growth exceeds its 5-year average (35% vs 14.5%)
• Gujarat Containers's year on year earnings growth rate has been positive over the past 5 years.
• Gujarat Containers used its assets more efficiently than the IN Packaging industry average last year based on Return on Assets.
• Gujarat Containers has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Gujarat Containers's earnings growth has exceeded the IN Packaging industry average in the past year (35% vs 16.2%).

Cons

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

value

Pros

• Gujarat Containers is good value based on assets compared to the IN Packaging industry average.
• Gujarat Containers is good value based on earnings compared to the India market.

Cons

• Gujarat Containers is overvalued based on earnings compared to the IN Packaging industry average.
• BSE:513507 is flat (0%) underperforming the Packaging industry which returned 6.3% over the past month.
• BSE:513507 is flat (0%) underperforming the market in India which returned 8% over the past month.