Panchsheel Organics Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (9.6x coverage).
• Panchsheel Organics's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividend payments have increased, but Panchsheel Organics only paid a dividend in the past 7 years.
• Whilst dividend payments have been stable, Panchsheel Organics has been paying a dividend for less than 10 years.
• Panchsheel Organics's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Panchsheel Organics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Panchsheel Organics is profitable, therefore cash runway is not a concern.
• Panchsheel Organics is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (60.7%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 10.4x debt.
• Panchsheel Organics's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (37% vs 12.3% today).
• Interest payments on debt are well covered by earnings (EBIT is 55.1x coverage).
• Panchsheel Organics's level of debt (12.3%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Panchsheel Organics board of directors is about average.
• Mahendra's remuneration is about average for companies of similar size in India.
• Mahendra's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

misc

Pros

Cons

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

past

Pros

• Panchsheel Organics's year on year earnings growth rate has been positive over the past 5 years.
• Panchsheel Organics used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
• Panchsheel Organics has improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Panchsheel Organics's 1-year earnings growth is less than its 5-year average (12.2% vs 15.3%)
• Panchsheel Organics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Panchsheel Organics's earnings growth has not exceeded the IN Pharmaceuticals industry average in the past year (12.2% vs 22.7%).

value

Pros

• Panchsheel Organics is good value based on assets compared to the IN Pharmaceuticals industry average.
• Panchsheel Organics is good value based on earnings compared to the IN Pharmaceuticals industry average.
• Panchsheel Organics is good value based on earnings compared to the India market.
• BSE:531726 is up 6.9% along with the Pharmaceuticals industry (6.8%) over the past month.

Cons

• Panchsheel Organics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Panchsheel Organics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• 531726 underperformed the Pharmaceuticals industry which returned 26.7% over the past year.
• 531726 underperformed the Market in India which returned -14.5% over the past year.
• BSE:531726 is up 6.9% underperforming the market in India which returned 8% over the past month.