Innovative Tech Pack Analysis

dividend

Pros

• Dividends paid are well covered by earnings (4.2x coverage).
• Innovative Tech Pack's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividend payments have increased, but Innovative Tech Pack only paid a dividend in the past 5 years.
• Innovative Tech Pack has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
• Innovative Tech Pack's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Innovative Tech Pack is profitable, therefore cash runway is not a concern.
• Innovative Tech Pack is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (50.9%, greater than 20% of total debt).
• Innovative Tech Pack's cash and other short term assets cover its long term commitments.

Cons

• Innovative Tech Pack's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Debt is not covered by short term assets, assets are 0.9x debt.
• The level of debt compared to net worth has increased over the past 5 years (84.7% vs 97.6% today).
• Interest payments on debt are not well covered by earnings (EBIT is 1.3x annual interest expense, ideally 3x coverage).
• Innovative Tech Pack's level of debt (97.6%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• Ketineni's remuneration is lower than average for companies of similar size in India.
• Ketineni's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• The average tenure for the Innovative Tech Pack board of directors is less than 3 years, this suggests a new board.

misc

Pros

Cons

• Innovative Tech Pack is not covered by any analysts.

past

Pros

• Innovative Tech Pack's 1-year earnings growth exceeds its 5-year average (54.8% vs -12.7%)
• Innovative Tech Pack used its assets more efficiently than the IN Packaging industry average last year based on Return on Assets.
• Innovative Tech Pack's earnings growth has exceeded the IN Packaging industry average in the past year (54.8% vs 16.2%).

Cons

• Innovative Tech Pack's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
• Innovative Tech Pack's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Innovative Tech Pack has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Innovative Tech Pack is good value based on assets compared to the IN Packaging industry average.
• BSE:523840 is up 15% outperforming the Packaging industry which returned 6.3% over the past month.
• BSE:523840 is up 15% outperforming the market in India which returned 8% over the past month.

Cons

• Innovative Tech Pack's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Innovative Tech Pack's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Innovative Tech Pack is overvalued based on earnings compared to the IN Packaging industry average.
• Innovative Tech Pack is overvalued based on earnings compared to the India market.
• 523840 underperformed the Packaging industry which returned -14.7% over the past year.
• 523840 underperformed the Market in India which returned -14.5% over the past year.