National Plastic Industries Analysis

dividend

Pros

• Dividends paid are well covered by earnings (2.6x coverage).
• National Plastic Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• National Plastic Industries's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• No dividend growth in 10 years.
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

health

Pros

• National Plastic Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• National Plastic Industries is profitable, therefore cash runway is not a concern.
• National Plastic Industries is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.4x debt.
• National Plastic Industries's cash and other short term assets cover its long term commitments.

Cons

• Debt is not well covered by operating cash flow (14.7%, less than 20% of total debt).
• The level of debt compared to net worth has increased over the past 5 years (135.5% vs 149.9% today).
• Interest payments on debt are not well covered by earnings (EBIT is 1.6x annual interest expense, ideally 3x coverage).
• National Plastic Industries's level of debt (149.9%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• Paresh's remuneration is lower than average for companies of similar size in India.
• Paresh's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• The average tenure for the National Plastic Industries board of directors is less than 3 years, this suggests a new board.

misc

Pros

Cons

• National Plastic Industries is not covered by any analysts.

past

Pros

• National Plastic Industries's year on year earnings growth rate has been positive over the past 5 years.

Cons

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

value

Pros

• National Plastic Industries is good value based on assets compared to the IN Consumer Durables industry average.
• National Plastic Industries is good value based on earnings compared to the IN Consumer Durables industry average.
• National Plastic Industries is good value based on earnings compared to the India market.
• BSE:526616 is up 11.9% outperforming the Consumer Durables industry which returned 6.7% over the past month.
• BSE:526616 is up 11.9% outperforming the market in India which returned 8% over the past month.

Cons

• National Plastic Industries's share price is below the future cash flow value, but not at a moderate discount (< 20%).
• National Plastic Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• 526616 underperformed the Consumer Durables industry which returned 5.6% over the past year.
• 526616 underperformed the Market in India which returned -14.5% over the past year.