Man Infraconstruction Analysis

dividend

Pros

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

Cons

• Dividends per share have fallen over the past 10 years.
• Dividends paid are not well covered by earnings (0.4x coverage).
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Man Infraconstruction's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Man Infraconstruction is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Man Infraconstruction is profitable, therefore cash runway is not a concern.
• Man Infraconstruction is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.6x debt.
• Man Infraconstruction's cash and other short term assets cover its long term commitments.

Cons

• Debt is not well covered by operating cash flow (3.4%, less than 20% of total debt).
• The level of debt compared to net worth has increased over the past 5 years (25.7% vs 65% today).
• Interest payments on debt are not well covered by earnings (EBIT is 0.1x annual interest expense, ideally 3x coverage).
• Man Infraconstruction's level of debt (65%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Man Infraconstruction board of directors is about average.
• Suketu's compensation has been consistent with company performance over the past year, both up more than 20%.
• More shares have been bought than sold by Man Infraconstruction individual insiders in the past 3 months.
• The average tenure for the Man Infraconstruction management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• Suketu's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

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

past

Pros

• Man Infraconstruction's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Cons

• Man Infraconstruction's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Man Infraconstruction used its assets less efficiently than the IN Construction industry average last year based on Return on Assets.
• Man Infraconstruction's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Man Infraconstruction has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Man Infraconstruction's 1-year earnings growth is negative, it can't be compared to the IN Construction industry average.

value

Pros

• 533169 outperformed the Construction industry which returned -40% over the past year.
• BSE:533169 is up 15.5% outperforming the Construction industry which returned 7.1% over the past month.
• BSE:533169 is up 15.5% outperforming the market in India which returned 8% over the past month.

Cons

• Man Infraconstruction's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Man Infraconstruction's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Man Infraconstruction is overvalued based on assets compared to the IN Construction industry average.
• Man Infraconstruction is overvalued based on earnings compared to the IN Construction industry average.
• Man Infraconstruction is overvalued based on earnings compared to the India market.
• 533169 underperformed the Market in India which returned -14.5% over the past year.