Orient Paper & Industries Analysis

dividend

Pros

• Dividends paid are well covered by earnings (4.3x coverage).
• Orient Paper & Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Orient Paper & Industries's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividends per share have fallen over the past 10 years.
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

health

Pros

• Orient Paper & Industries is profitable, therefore cash runway is not a concern.
• Orient Paper & Industries is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (392.3%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 6.4x debt.
• The level of debt compared to net worth has been reduced over the past 5 years (78.7% vs 1.7% today).
• Interest payments on debt are well covered by earnings (EBIT is 59.3x coverage).
• Orient Paper & Industries's level of debt (1.7%) compared to net worth is satisfactory (less than 40%).

Cons

• Orient Paper & Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Orient Paper & Industries's long term commitments exceed its cash and other short term assets.
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Orient Paper & Industries management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• The average tenure for the Orient Paper & Industries board of directors is less than 3 years, this suggests a new board.
• Manohar's remuneration is higher than average for companies of similar size in India.
• Manohar's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

misc

Pros

Cons

• Orient Paper & Industries is not covered by any analysts.
• Orient Paper & Industries has significant price volatility in the past 3 months.

past

Pros

• Orient Paper & Industries has delivered over 20% year on year earnings growth in the past 5 years.

Cons

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

value

Pros

• Orient Paper & Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Orient Paper & Industries is good value based on assets compared to the IN Forestry industry average.
• Orient Paper & Industries is good value based on earnings compared to the India market.
• 502420 outperformed the Forestry industry which returned -48.1% over the past year.
• BSE:502420 is up 12.1% outperforming the Forestry industry which returned 7.8% over the past month.
• BSE:502420 is up 12.1% outperforming the market in India which returned 8% over the past month.

Cons

• Orient Paper & Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• Orient Paper & Industries is overvalued based on earnings compared to the IN Forestry industry average.
• 502420 underperformed the Market in India which returned -14.5% over the past year.