Laffans Petrochemicals Analysis

dividend

Pros

Cons

• Unable to evaluate Laffans Petrochemicals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Laffans Petrochemicals's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Laffans Petrochemicals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Laffans Petrochemicals has been profitable on average in the past, therefore cash runway is not a concern.
• Laffans Petrochemicals has been profitable on average in the past, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (3949.8%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 36.5x debt.
• Laffans Petrochemicals's cash and other short term assets cover its long term commitments.
• Laffans Petrochemicals's level of debt (0.3%) compared to net worth is satisfactory (less than 40%).
• Low level of unsold assets.

Cons

management

Pros

• The tenure for the Laffans Petrochemicals board of directors is about average.
• Sandeep's remuneration is about average for companies of similar size in India.

Cons

• Sandeep's compensation has increased whilst company is loss making.

misc

Pros

Cons

• Laffans Petrochemicals is not covered by any analysts.
• Laffans Petrochemicals has significant price volatility in the past 3 months.

past

Pros

Cons

• Unable to compare Laffans Petrochemicals's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Laffans Petrochemicals does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
• It is difficult to establish if Laffans Petrochemicals has efficiently used its assets last year compared to the IN Trade Distributors industry average (Return on Assets) as it is loss-making.
• It is difficult to establish if Laffans Petrochemicals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Laffans Petrochemicals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Laffans Petrochemicals's 1-year growth to the IN Trade Distributors industry average as it is not currently profitable.

value

Pros

• Laffans Petrochemicals's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Laffans Petrochemicals is good value based on assets compared to the IN Trade Distributors industry average.
• 524522 outperformed the Market in India which returned -14.5% over the past year.
• BSE:524522 is up 7% along with the Trade Distributors industry (6.8%) over the past month.

Cons

• Laffans Petrochemicals's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• Laffans Petrochemicals is loss making, we can't compare its value to the IN Trade Distributors industry average.
• Laffans Petrochemicals is loss making, we can't compare the value of its earnings to the India market.
• 524522 underperformed the Trade Distributors industry which returned -5.6% over the past year.
• BSE:524522 is up 7% underperforming the market in India which returned 8% over the past month.