Himadri Speciality Chemical Analysis

dividend

Pros

• Dividends after 3 years are expected to be thoroughly covered by earnings (30x coverage).

Cons

• Himadri Speciality Chemical is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
• No need to calculate the sustainability of Himadri Speciality Chemical's dividends as it is not paying a notable one for India.
• Himadri Speciality Chemical is not paying a notable dividend for India, therefore no need to check if the payments are stable.
• Himadri Speciality Chemical's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Himadri Speciality Chemical's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Himadri Speciality Chemical's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Himadri Speciality Chemical's earnings are expected to exceed the low risk growth rate next year.
• Himadri Speciality Chemical's revenue growth is expected to exceed the India market average.

Cons

• Cash flow for Himadri Speciality Chemical is expected to decrease over the next 2 years.
• Himadri Speciality Chemical's earnings are expected to grow by 11.1% yearly, however this is not considered high growth (20% yearly).
• Himadri Speciality Chemical's earnings growth is positive but not above the India market average.
• Himadri Speciality Chemical's net income is expected to increase but not above the 50% threshold in 2 years time.
• Himadri Speciality Chemical is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• Performance (ROE) is not expected to exceed the current IN Chemicals industry average.
• A decline in Himadri Speciality Chemical's performance (ROE) is expected over the next 3 years.
• Himadri Speciality Chemical's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Himadri Speciality Chemical's revenue is expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Himadri Speciality Chemical is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Himadri Speciality Chemical is profitable, therefore cash runway is not a concern.
• Himadri Speciality Chemical is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (101.4%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 2.5x debt.
• Himadri Speciality Chemical'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 (149.5% vs 23.5% today).
• Interest payments on debt are well covered by earnings (EBIT is 6.9x coverage).
• Himadri Speciality Chemical's level of debt (23.5%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Himadri Speciality Chemical board of directors is about average.
• Anurag's remuneration is lower than average for companies of similar size in India.
• The average tenure for the Himadri Speciality Chemical management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• Anurag's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

misc

Pros

Cons

• Himadri Speciality Chemical is covered by less than 3 analysts.
• Himadri Speciality Chemical has significant price volatility in the past 3 months.

past

Pros

• Himadri Speciality Chemical has delivered over 20% year on year earnings growth in the past 5 years.
• Himadri Speciality Chemical used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Himadri Speciality Chemical has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

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

value

Pros

• Himadri Speciality Chemical is good value based on expected growth next year.
• Himadri Speciality Chemical is good value based on earnings compared to the IN Chemicals industry average.
• Himadri Speciality Chemical is good value based on earnings compared to the India market.

Cons

• Himadri Speciality Chemical's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Himadri Speciality Chemical's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Himadri Speciality Chemical is overvalued based on assets compared to the IN Chemicals industry average.
• HSCL underperformed the Chemicals industry which returned 2.2% over the past year.
• HSCL underperformed the Market in India which returned -14.5% over the past year.
• NSEI:HSCL is down -1.4% underperforming the Chemicals industry which returned 6.9% over the past month.
• NSEI:HSCL is down -1.4% underperforming the market in India which returned 8% over the past month.