Kanishk Steel Industries Analysis

dividend

Pros

Cons

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

health

Pros

• Kanishk Steel Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Kanishk Steel Industries is profitable, therefore cash runway is not a concern.
• Kanishk Steel Industries is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (34.6%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 7.8x debt.
• Kanishk Steel Industries'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 (38.6% vs 24.1% today).
• Kanishk Steel Industries's level of debt (24.1%) compared to net worth is satisfactory (less than 40%).

Cons

• Interest payments on debt are not well covered by earnings (EBIT is 0.1x annual interest expense, ideally 3x coverage).
• High level of physical assets or inventory.

management

Pros

• Vishal's remuneration is lower than average for companies of similar size in India.
• Vishal's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Kanishk Steel Industries management team is about average.

Cons

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

misc

Pros

Cons

• Kanishk Steel Industries is not covered by any analysts.

past

Pros

• Kanishk Steel Industries's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Cons

• Kanishk Steel Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Kanishk Steel Industries used its assets less efficiently than the IN Metals and Mining industry average last year based on Return on Assets.
• Kanishk Steel Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Kanishk Steel Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Kanishk Steel Industries's 1-year earnings growth is negative, it can't be compared to the IN Metals and Mining industry average.

value

Pros

• Kanishk Steel Industries is good value based on assets compared to the IN Metals and Mining industry average.
• 513456 outperformed the Metals and Mining industry which returned -28.6% over the past year.
• 513456 outperformed the Market in India which returned -14.5% over the past year.

Cons

• Kanishk Steel Industries's share price is below the future cash flow value, but not at a moderate discount (< 20%).
• Kanishk Steel Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• Kanishk Steel Industries is overvalued based on earnings compared to the IN Metals and Mining industry average.
• Kanishk Steel Industries is overvalued based on earnings compared to the India market.
• BSE:513456 is down -6% underperforming the Metals and Mining industry which returned 7.5% over the past month.
• BSE:513456 is down -6% underperforming the market in India which returned 8% over the past month.