Kirloskar Industries Analysis

dividend

Pros

• Dividends paid are well covered by earnings (3.7x coverage).
• Kirloskar Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Kirloskar Industries's dividend is above the markets top 25% of dividend payers in India (3.08%).

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%).

health

Pros

• Kirloskar Industries is profitable, therefore cash runway is not a concern.
• Kirloskar Industries is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (69.5%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 2.6x debt.
• Kirloskar 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 (15.1% vs 12.9% today).
• Interest payments on debt are well covered by earnings (EBIT is 9.3x coverage).
• Kirloskar Industries's level of debt (12.9%) compared to net worth is satisfactory (less than 40%).

Cons

• Kirloskar Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• High level of physical assets or inventory.

management

Pros

• The tenure for the Kirloskar Industries board of directors is about average.
• The tenure for the Kirloskar Industries management team is about average.

Cons

• Mahesh's remuneration is higher than average for companies of similar size in India.
• Mahesh's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.

misc

Pros

Cons

• Kirloskar Industries is not covered by any analysts.

past

Pros

• Kirloskar Industries's year on year earnings growth rate has been positive over the past 5 years.
• Kirloskar Industries's earnings growth has exceeded the IN Metals and Mining industry average in the past year (0.3% vs -4.8%).

Cons

• Kirloskar Industries's 1-year earnings growth is less than its 5-year average (0.3% vs 4.9%)
• Kirloskar Industries used its assets less efficiently than the IN Metals and Mining industry average last year based on Return on Assets.
• Kirloskar Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Kirloskar Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Kirloskar Industries is good value based on assets compared to the IN Metals and Mining industry average.
• Kirloskar Industries is good value based on earnings compared to the IN Metals and Mining industry average.
• Kirloskar Industries is good value based on earnings compared to the India market.
• BSE:500243 is up 7.8% along with the Metals and Mining industry (7.5%) over the past month.
• BSE:500243 is up 7.8% along with the India market (8%) over the past month.

Cons

• Kirloskar Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Kirloskar Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• 500243 underperformed the Metals and Mining industry which returned -28.6% over the past year.
• 500243 underperformed the Market in India which returned -14.5% over the past year.