Kanco Tea & Industries Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Kanco Tea & Industries has not reported any payouts.
• Unable to evaluate Kanco Tea & Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Kanco Tea & Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Kanco Tea & Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Kanco Tea & Industries is profitable, therefore cash runway is not a concern.
• Kanco Tea & Industries is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.2x debt.
• Kanco Tea & Industries's cash and other short term assets cover its long term commitments.

Cons

• Operating cash flow is negative therefore debt is not well covered.
• The level of debt compared to net worth has increased over the past 5 years (38.9% vs 59.3% today).
• Interest payments on debt are not well covered by earnings (EBIT is 0.7x annual interest expense, ideally 3x coverage).
• Kanco Tea & Industries's level of debt (59.3%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Kanco Tea & Industries board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Anuradha's remuneration is about average for companies of similar size in India.
• Anuradha's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

misc

Pros

Cons

• Kanco Tea & Industries is not covered by any analysts.
• Kanco Tea & Industries has significant price volatility in the past 3 months.

past

Pros

• Kanco Tea & Industries's 1-year earnings growth exceeds its 5-year average (205.5% vs 20.2%)
• Kanco Tea & Industries has delivered over 20% year on year earnings growth in the past 5 years.
• Kanco Tea & Industries used its assets more efficiently than the IN Food industry average last year based on Return on Assets.
• Kanco Tea & Industries has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
• Kanco Tea & Industries's earnings growth has exceeded the IN Food industry average in the past year (205.5% vs 20.5%).

Cons

• Kanco Tea & Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Kanco Tea & Industries is good value based on assets compared to the IN Food industry average.
• Kanco Tea & Industries is good value based on earnings compared to the IN Food industry average.
• Kanco Tea & Industries is good value based on earnings compared to the India market.
• 541005 outperformed the Market in India which returned -14.5% over the past year.
• BSE:541005 is up 13.4% outperforming the Food industry which returned 5% over the past month.
• BSE:541005 is up 13.4% outperforming the market in India which returned 8% over the past month.

Cons

• 541005 underperformed the Food industry which returned 18.8% over the past year.