Insecticides India Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (29.7x coverage).
• Insecticides (India)'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%).
• Insecticides (India)'s dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Insecticides (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Insecticides (India) is profitable, therefore cash runway is not a concern.
• Insecticides (India) is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 3.6x debt.
• Insecticides (India)'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 (112.6% vs 40.4% today).
• Interest payments on debt are well covered by earnings (EBIT is 7.8x coverage).

Cons

• Operating cash flow is negative therefore debt is not well covered.
• Insecticides (India)'s level of debt (40.4%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Insecticides (India) board of directors is about average.
• The average tenure for the Insecticides (India) management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

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

misc

Pros

Cons

• Insecticides (India) is not covered by any analysts.
• Insecticides (India) has significant price volatility in the past 3 months.

past

Pros

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

Cons

• Insecticides (India)'s 1-year earnings growth is less than its 5-year average (8.2% vs 22.1%)
• Insecticides (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Insecticides (India)'s earnings growth has not exceeded the IN Chemicals industry average in the past year (8.2% vs 9.1%).

value

Pros

• Insecticides (India) is good value based on earnings compared to the IN Chemicals industry average.
• Insecticides (India) is good value based on earnings compared to the India market.
• BSE:532851 is up 22% outperforming the Chemicals industry which returned 6.9% over the past month.
• BSE:532851 is up 22% outperforming the market in India which returned 8% over the past month.

Cons

• Insecticides (India)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Insecticides (India)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Insecticides (India) is overvalued based on assets compared to the IN Chemicals industry average.
• 532851 underperformed the Chemicals industry which returned 2.2% over the past year.
• 532851 underperformed the Market in India which returned -14.5% over the past year.