Hindustan Adhesives Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Hindustan Adhesives has not reported any payouts.
• Unable to evaluate Hindustan Adhesives's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Hindustan Adhesives's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Hindustan Adhesives is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Hindustan Adhesives is profitable, therefore cash runway is not a concern.
• Hindustan Adhesives is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (21.3%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1x debt.
• Hindustan Adhesives's cash and other short term assets cover its long term commitments.

Cons

• The level of debt compared to net worth has increased over the past 5 years (129.2% vs 161.2% today).
• Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).
• Hindustan Adhesives's level of debt (161.2%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Hindustan Adhesives board of directors is about average.
• Madhusudan Lalit's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

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

misc

Pros

Cons

• Hindustan Adhesives is not covered by any analysts.

past

Pros

• Hindustan Adhesives's 1-year earnings growth exceeds its 5-year average (165.4% vs 20.5%)
• Hindustan Adhesives has delivered over 20% year on year earnings growth in the past 5 years.
• Hindustan Adhesives used its assets more efficiently than the IN Packaging industry average last year based on Return on Assets.
• Hindustan Adhesives's earnings growth has exceeded the IN Packaging industry average in the past year (165.4% vs 16.2%).

Cons

• Hindustan Adhesives's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Hindustan Adhesives has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Hindustan Adhesives is good value based on earnings compared to the India market.
• BSE:514428 is up 7.1% along with the Packaging industry (6.3%) over the past month.
• BSE:514428 is up 7.1% along with the India market (8%) over the past month.

Cons

• Hindustan Adhesives is overvalued based on assets compared to the IN Packaging industry average.
• Hindustan Adhesives is overvalued based on earnings compared to the IN Packaging industry average.
• 514428 underperformed the Packaging industry which returned -14.7% over the past year.
• 514428 underperformed the Market in India which returned -14.5% over the past year.