Lotus Chocolate Company Analysis

dividend

Pros

Cons

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

health

Pros

• Lotus Chocolate is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Lotus Chocolate is profitable, therefore cash runway is not a concern.
• Lotus Chocolate is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.2x debt.
• Lotus Chocolate's cash and other short term assets cover its long term commitments.
• Lotus Chocolate had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
• Lotus Chocolate earns more interest than it pays, coverage of interest payments is not a concern.

Cons

• Debt is not well covered by operating cash flow (15.4%, less than 20% of total debt).
• Lotus Chocolate's level of debt (76858.6%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Lotus Chocolate board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Subramanya's remuneration is lower than average for companies of similar size in India.
• Subramanya's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

misc

Pros

Cons

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

past

Pros

• Lotus Chocolate's 1-year earnings growth exceeds its 5-year average (254.6% vs 22.2%)
• Lotus Chocolate has delivered over 20% year on year earnings growth in the past 5 years.
• Lotus Chocolate used its assets more efficiently than the IN Food industry average last year based on Return on Assets.
• Lotus Chocolate 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).
• Lotus Chocolate's earnings growth has exceeded the IN Food industry average in the past year (254.6% vs 20.5%).

Cons

• Whilst Lotus Chocolate made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.

value

Pros

• Lotus Chocolate's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Lotus Chocolate's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Lotus Chocolate is good value based on earnings compared to the IN Food industry average.
• Lotus Chocolate is good value based on earnings compared to the India market.
• 523475 outperformed the Market in India which returned -14.5% over the past year.
• BSE:523475 is up 7.8% outperforming the Food industry which returned 5% over the past month.
• BSE:523475 is up 7.8% along with the India market (8%) over the past month.

Cons

• Lotus Chocolate is overvalued based on assets compared to the IN Food industry average.
• 523475 underperformed the Food industry which returned 18.8% over the past year.