India Nippon Electricals Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (3.8x coverage).
• India Nippon Electricals's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• India Nippon Electricals's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• India Nippon Electricals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• India Nippon Electricals is profitable, therefore cash runway is not a concern.
• India Nippon Electricals is profitable, therefore cash runway is not a concern.
• India Nippon Electricals has no debt, it does not need to be covered by operating cash flow.
• India Nippon Electricals has no debt, it does not need to be covered by short term assets.
• India Nippon Electricals's cash and other short term assets cover its long term commitments.
• India Nippon Electricals has no debt compared to 5 years ago when it was 0.9%.
• India Nippon Electricals has no debt, therefore coverage of interest payments is not a concern.
• India Nippon Electricals has no debt.

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the India Nippon Electricals board of directors is about average.

Cons

• Arvind's remuneration is higher than average for companies of similar size in India.
• Arvind's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.

misc

Pros

Cons

• India Nippon Electricals is not covered by any analysts.
• India Nippon Electricals has significant price volatility in the past 3 months.

past

Pros

• India Nippon Electricals has delivered over 20% year on year earnings growth in the past 5 years.
• India Nippon Electricals used its assets more efficiently than the IN Auto Components industry average last year based on Return on Assets.
• India Nippon Electricals has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• India Nippon Electricals's earnings growth has exceeded the IN Auto Components industry average in the past year (5.9% vs -22.3%).

Cons

• India Nippon Electricals's 1-year earnings growth is less than its 5-year average (5.9% vs 20.3%)
• India Nippon Electricals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• India Nippon Electricals is good value based on earnings compared to the IN Auto Components industry average.
• India Nippon Electricals is good value based on earnings compared to the India market.
• NSEI:INDNIPPON is up 8.6% along with the India market (8%) over the past month.

Cons

• India Nippon Electricals's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• India Nippon Electricals's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• India Nippon Electricals is overvalued based on assets compared to the IN Auto Components industry average.
• INDNIPPON underperformed the Auto Components industry which returned -22.4% over the past year.
• INDNIPPON underperformed the Market in India which returned -14.5% over the past year.
• NSEI:INDNIPPON is up 8.6% underperforming the Auto Components industry which returned 13.2% over the past month.