Kwality Pharmaceuticals Analysis

dividend

Pros

Cons

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

health

Pros

• Kwality Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Kwality Pharmaceuticals is profitable, therefore cash runway is not a concern.
• Kwality Pharmaceuticals is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (63.2%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 3.9x debt.
• Kwality Pharmaceuticals's cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 6x coverage).

Cons

• The level of debt compared to net worth has increased over the past 5 years (37.4% vs 53% today).
• Kwality Pharmaceuticals's level of debt (53%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

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

Cons

misc

Pros

Cons

• Kwality Pharmaceuticals is not covered by any analysts.
• Kwality Pharmaceuticals's last earnings update was 215 days ago.
• Kwality Pharmaceuticals has significant price volatility in the past 3 months.

past

Pros

• Kwality Pharmaceuticals's 1-year earnings growth exceeds its 5-year average (55.5% vs 39.2%)
• Kwality Pharmaceuticals has delivered over 20% year on year earnings growth in the past 5 years.
• Kwality Pharmaceuticals used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
• Kwality Pharmaceuticals has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Kwality Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• Kwality Pharmaceuticals's earnings growth has exceeded the IN Pharmaceuticals industry average in the past year (55.5% vs 22.7%).

Cons

value

Pros

• Kwality Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Kwality Pharmaceuticals is good value based on assets compared to the IN Pharmaceuticals industry average.
• Kwality Pharmaceuticals is good value based on earnings compared to the IN Pharmaceuticals industry average.
• Kwality Pharmaceuticals is good value based on earnings compared to the India market.

Cons

• Kwality Pharmaceuticals's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• BSE:539997 is down -3.3% underperforming the Pharmaceuticals industry which returned 6.8% over the past month.
• BSE:539997 is down -3.3% underperforming the market in India which returned 8% over the past month.