Jain Irrigation Systems-DVR Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Jain Irrigation Systems's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Jain Irrigation Systems's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• The company is paying a dividend however it is incurring a loss.
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

health

Pros

• Jain Irrigation Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Jain Irrigation Systems has been profitable on average in the past, therefore cash runway is not a concern.
• Jain Irrigation Systems has been profitable on average in the past, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.2x debt.
• Jain Irrigation Systems'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 (188.2% vs 139.1% today).

Cons

• Operating cash flow is negative therefore debt is not well covered.
• Jain Irrigation Systems is making a loss, therefore interest payments are not well covered by earnings.
• Jain Irrigation Systems's level of debt (139.1%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Jain Irrigation Systems board of directors is about average.
• The average tenure for the Jain Irrigation Systems management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• Anil's remuneration is higher than average for companies of similar size in India.
• Anil's compensation has increased whilst company is loss making.

misc

Pros

Cons

• Jain Irrigation Systems is not covered by any analysts.
• Jain Irrigation Systems has significant price volatility in the past 3 months.

past

Pros

Cons

• Unable to compare Jain Irrigation Systems's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Jain Irrigation Systems does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
• Jain Irrigation Systems used its assets less efficiently than the IN Machinery industry average last year based on Return on Assets.
• It is difficult to establish if Jain Irrigation Systems improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Jain Irrigation Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Jain Irrigation Systems's 1-year growth to the IN Machinery industry average as it is not currently profitable.

value

Pros

• Jain Irrigation Systems is good value based on assets compared to the IN Machinery industry average.
• NSEI:JISLDVREQS is up 33.6% outperforming the Machinery industry which returned 8.3% over the past month.
• NSEI:JISLDVREQS is up 33.6% outperforming the market in India which returned 8% over the past month.

Cons

• Jain Irrigation Systems's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Jain Irrigation Systems's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Jain Irrigation Systems is loss making, we can't compare its value to the IN Machinery industry average.
• Jain Irrigation Systems is loss making, we can't compare the value of its earnings to the India market.
• JISLDVREQS underperformed the Machinery industry which returned -23.7% over the past year.
• JISLDVREQS underperformed the Market in India which returned -14.5% over the past year.