Paramount Cosmetics (India) Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Paramount Cosmetics (India) has not reported any payouts.
• Unable to evaluate Paramount Cosmetics (India)'s dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Paramount Cosmetics (India)'s dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Paramount Cosmetics (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Paramount Cosmetics (India) is profitable, therefore cash runway is not a concern.
• Paramount Cosmetics (India) is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (22.3%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.4x debt.
• Paramount Cosmetics (India)'s cash and other short term assets cover its long term commitments.

Cons

• The level of debt compared to net worth has increased over the past 5 years (89.3% vs 100.6% today).
• Interest payments on debt are not well covered by earnings (EBIT is 1.8x annual interest expense, ideally 3x coverage).
• Paramount Cosmetics (India)'s level of debt (100.6%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

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

Cons

misc

Pros

Cons

• Paramount Cosmetics (India) is not covered by any analysts.
• Paramount Cosmetics (India) has significant price volatility in the past 3 months.

past

Pros

• Paramount Cosmetics (India) has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Paramount Cosmetics (India) has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
• Paramount Cosmetics (India)'s year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
• Paramount Cosmetics (India) used its assets less efficiently than the IN Personal Products industry average last year based on Return on Assets.
• Paramount Cosmetics (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Paramount Cosmetics (India) has become profitable in the last year making it difficult to compare the IN Personal Products industry average.

value

Pros

• Paramount Cosmetics (India)'s share price is below the future cash flow value, and at a moderate discount (> 20%).
• Paramount Cosmetics (India)'s share price is below the future cash flow value, and at a substantial discount (> 40%).
• Paramount Cosmetics (India) is good value based on assets compared to the IN Personal Products industry average.
• Paramount Cosmetics (India) is good value based on earnings compared to the IN Personal Products industry average.
• Paramount Cosmetics (India) is good value based on earnings compared to the India market.
• BSE:507970 is up 47.9% outperforming the Personal Products industry which returned 3.7% over the past month.
• BSE:507970 is up 47.9% outperforming the market in India which returned 8% over the past month.

Cons