Nalin Lease Finance Analysis

dividend

Pros

Cons

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

health

Pros

• Nalin Lease Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Nalin Lease Finance is profitable, therefore cash runway is not a concern.
• Nalin Lease Finance is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 3x debt.
• Nalin Lease Finance's cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
• Low level of unsold assets.

Cons

• Debt is not well covered by operating cash flow (11.6%, less than 20% of total debt).
• The level of debt compared to net worth has increased over the past 5 years (0.3% vs 50.2% today).
• Nalin Lease Finance's level of debt (50.2%) compared to net worth is high (greater than 40%).

management

Pros

• The tenure for the Nalin Lease Finance board of directors is about average.
• Dilipkumar's remuneration is lower than average for companies of similar size in India.
• Dilipkumar's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the Nalin Lease Finance management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

misc

Pros

Cons

• Nalin Lease Finance is not covered by any analysts.
• Nalin Lease Finance has significant price volatility in the past 3 months.

past

Pros

• Nalin Lease Finance's 1-year earnings growth exceeds its 5-year average (35.5% vs 15%)
• Nalin Lease Finance's year on year earnings growth rate has been positive over the past 5 years.
• Nalin Lease Finance used its assets more efficiently than the IN Consumer Finance industry average last year based on Return on Assets.
• Nalin Lease Finance has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Nalin Lease Finance's earnings growth has exceeded the IN Consumer Finance industry average in the past year (35.5% vs 11%).

Cons

• Nalin Lease Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Nalin Lease Finance is good value based on assets compared to the IN Consumer Finance industry average.
• Nalin Lease Finance is good value based on earnings compared to the IN Consumer Finance industry average.
• Nalin Lease Finance is good value based on earnings compared to the India market.
• 531212 outperformed the Consumer Finance industry which returned -28.8% over the past year.

Cons

• Nalin Lease Finance's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Nalin Lease Finance's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• 531212 underperformed the Market in India which returned -14.5% over the past year.
• BSE:531212 is down -18.3% underperforming the Consumer Finance industry which returned 10.3% over the past month.
• BSE:531212 is down -18.3% underperforming the market in India which returned 8% over the past month.