Gujarat Terce Laboratories Analysis

dividend

Pros

Cons

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

health

Pros

• Gujarat Terce Laboratories is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Gujarat Terce Laboratories is profitable, therefore cash runway is not a concern.
• Gujarat Terce Laboratories is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 5.5x debt.
• Gujarat Terce Laboratories'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 (32.5% vs 19.6% today).
• Interest payments on debt are well covered by earnings (EBIT is 49.7x coverage).
• Gujarat Terce Laboratories's level of debt (19.6%) compared to net worth is satisfactory (less than 40%).

Cons

• Operating cash flow is negative therefore debt is not well covered.
• High level of physical assets or inventory.

management

Pros

• The tenure for the Gujarat Terce Laboratories board of directors is about average.
• Natwarbhai's remuneration is lower than average for companies of similar size in India.
• Natwarbhai's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• The average tenure for the Gujarat Terce Laboratories management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• Gujarat Terce Laboratories is not covered by any analysts.
• Gujarat Terce Laboratories has significant price volatility in the past 3 months.

past

Pros

• Gujarat Terce Laboratories's 1-year earnings growth exceeds its 5-year average (666.4% vs 44.5%)
• Gujarat Terce Laboratories has delivered over 20% year on year earnings growth in the past 5 years.
• Gujarat Terce Laboratories has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Gujarat Terce Laboratories's earnings growth has exceeded the IN Pharmaceuticals industry average in the past year (666.4% vs 22.7%).

Cons

• Gujarat Terce Laboratories used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
• Gujarat Terce Laboratories has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Gujarat Terce Laboratories is good value based on assets compared to the IN Pharmaceuticals industry average.
• Gujarat Terce Laboratories is good value based on earnings compared to the IN Pharmaceuticals industry average.
• Gujarat Terce Laboratories is good value based on earnings compared to the India market.
• 524314 outperformed the Market in India which returned -14.5% over the past year.

Cons

• 524314 underperformed the Pharmaceuticals industry which returned 26.7% over the past year.
• BSE:524314 is down -12.9% underperforming the Pharmaceuticals industry which returned 6.8% over the past month.
• BSE:524314 is down -12.9% underperforming the market in India which returned 8% over the past month.