Kilitch Drugs (India) Analysis

dividend

Pros

• Dividends paid are well covered by earnings (3.4x coverage).

Cons

• Dividends per share have fallen over the past 10 years.
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Kilitch Drugs (India)'s pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Kilitch Drugs (India)'s dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Kilitch Drugs (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Kilitch Drugs (India) is profitable, therefore cash runway is not a concern.
• Kilitch Drugs (India) is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 5.2x debt.
• Kilitch Drugs (India)'s cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 11.5x coverage).
• Kilitch Drugs (India)'s level of debt (10.9%) compared to net worth is satisfactory (less than 40%).

Cons

• Debt is not well covered by operating cash flow (2.2%, less than 20% of total debt).
• The level of debt compared to net worth has increased over the past 5 years (0% vs 10.9% today).
• High level of physical assets or inventory.

management

Pros

• Mukund's remuneration is lower than average for companies of similar size in India.
• Mukund's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• The average tenure for the Kilitch Drugs (India) board of directors is less than 3 years, this suggests a new board.

misc

Pros

Cons

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

past

Pros

• Kilitch Drugs (India) has delivered over 20% year on year earnings growth in the past 5 years.
• Kilitch Drugs (India) 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).

Cons

• Kilitch Drugs (India)'s 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Kilitch Drugs (India) used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
• Kilitch Drugs (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Kilitch Drugs (India)'s 1-year earnings growth is negative, it can't be compared to the IN Pharmaceuticals industry average.

value

Pros

• Kilitch Drugs (India) is good value based on assets compared to the IN Pharmaceuticals industry average.
• BSE:524500 is up 14.2% outperforming the Pharmaceuticals industry which returned 6.8% over the past month.
• BSE:524500 is up 14.2% outperforming the market in India which returned 8% over the past month.

Cons

• Kilitch Drugs (India)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Kilitch Drugs (India)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Kilitch Drugs (India) is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
• Kilitch Drugs (India) is overvalued based on earnings compared to the India market.
• 524500 underperformed the Pharmaceuticals industry which returned 26.7% over the past year.
• 524500 underperformed the Market in India which returned -14.5% over the past year.