Makers Laboratories Analysis

dividend

Pros

• Makers Laboratories's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• No dividend growth in 10 years.
• The company is paying a dividend however it is incurring a loss.
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Makers Laboratories's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Makers Laboratories is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Makers Laboratories has been profitable on average in the past, therefore cash runway is not a concern.
• Makers Laboratories has been profitable on average in the past, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (29.6%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 2.8x debt.
• Makers Laboratories's cash and other short term assets cover its long term commitments.
• Makers Laboratories's level of debt (19.1%) compared to net worth is satisfactory (less than 40%).

Cons

• The level of debt compared to net worth has increased over the past 5 years (3.2% vs 19.1% today).
• Makers Laboratories is making a loss, therefore interest payments are not well covered by earnings.
• High level of physical assets or inventory.

management

Pros

• Saahil's remuneration is about average for companies of similar size in India.
• The tenure for the Makers Laboratories management team is about average.

Cons

• The average tenure for the Makers Laboratories board of directors is less than 3 years, this suggests a new board.
• Saahil's compensation has increased whilst company is loss making.

misc

Pros

Cons

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

past

Pros

Cons

• Unable to compare Makers Laboratories's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Makers Laboratories does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
• Makers Laboratories used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
• It is difficult to establish if Makers Laboratories 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 Makers Laboratories has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Makers Laboratories's 1-year growth to the IN Pharmaceuticals industry average as it is not currently profitable.

value

Pros

• Makers Laboratories is good value based on assets compared to the IN Pharmaceuticals industry average.
• 506919 outperformed the Market in India which returned -14.5% over the past year.
• BSE:506919 is up 20.7% outperforming the Pharmaceuticals industry which returned 6.8% over the past month.
• BSE:506919 is up 20.7% outperforming the market in India which returned 8% over the past month.

Cons

• Makers Laboratories's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Makers Laboratories's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Makers Laboratories is loss making, we can't compare its value to the IN Pharmaceuticals industry average.
• Makers Laboratories is loss making, we can't compare the value of its earnings to the India market.
• 506919 underperformed the Pharmaceuticals industry which returned 26.7% over the past year.