Invigorated Business Consulting Analysis

dividend

Pros

Cons

• Unable to evaluate Escorts Finance's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Escorts Finance's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Escorts Finance is profitable, therefore cash runway is not a concern.
• Escorts Finance is profitable, therefore cash runway is not a concern.
• Low level of unsold assets.

Cons

• Escorts Finance's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Operating cash flow is negative therefore debt is not well covered.
• Escorts Finance has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
• Escorts Finance's long term commitments exceed its cash and other short term assets.
• Irrelevant to check if Escorts Finance's debt level has increased considering it has negative shareholder equity.
• Escorts Finance has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

management

Pros

Cons

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

misc

Pros

Cons

• Escorts Finance is not covered by any analysts.
• Escorts Finance's last earnings update was 281 days ago.
• Escorts Finance has significant price volatility in the past 3 months.

past

Pros

Cons

• Escorts Finance's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Escorts Finance used its assets less efficiently than the IN Capital Markets industry average last year based on Return on Assets.
• It is difficult to establish if Escorts Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.
• It is difficult to establish if Escorts Finance has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
• Escorts Finance's 1-year earnings growth is negative, it can't be compared to the IN Capital Markets industry average.

value

Pros

• Escorts Finance's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Escorts Finance's share price is below the future cash flow value, and at a substantial discount (> 40%).
• BSE:511716 is up 69.2% outperforming the Capital Markets industry which returned 8.7% over the past month.
• BSE:511716 is up 69.2% outperforming the market in India which returned 8% over the past month.

Cons

• Escorts Finance has negative assets, we can't compare the value of its assets to the IN Capital Markets industry average.
• Escorts Finance is overvalued based on earnings compared to the IN Capital Markets industry average.
• Escorts Finance is overvalued based on earnings compared to the India market.
• 511716 underperformed the Capital Markets industry which returned -21% over the past year.
• 511716 underperformed the Market in India which returned -14.5% over the past year.