Polyplex Corporation Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (5.2x coverage).
• Dividends after 3 years are expected to be well covered by earnings (4.9x coverage).
• Polyplex's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Polyplex's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

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

future

Pros

• Polyplex's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Polyplex's earnings are expected to exceed the low risk growth rate next year.
• Polyplex's revenue growth is expected to exceed the India market average.

Cons

• Cash flow for Polyplex is expected to increase but not above the 50% threshold in 2 years time.
• Polyplex's earnings are expected to grow by 15.5% yearly, however this is not considered high growth (20% yearly).
• Polyplex's earnings growth is positive but not above the India market average.
• Polyplex's net income is expected to increase but not above the 50% threshold in 2 years time.
• Polyplex is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• Performance (ROE) is not expected to exceed the current IN Chemicals industry average.
• A decline in Polyplex's performance (ROE) is expected over the next 3 years.
• Polyplex's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Polyplex's revenue is expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Polyplex is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Polyplex is profitable, therefore cash runway is not a concern.
• Polyplex is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (106.3%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 3.7x debt.
• Polyplex'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 (59.4% vs 15.3% today).
• Interest payments on debt are well covered by earnings (EBIT is 34.9x coverage).
• Polyplex's level of debt (15.3%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Polyplex board of directors is about average.
• Pranay's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• Pranay's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Polyplex has significant price volatility in the past 3 months.

past

Pros

• Polyplex has delivered over 20% year on year earnings growth in the past 5 years.
• Polyplex has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Polyplex's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Polyplex used its assets less efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Polyplex has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Polyplex's 1-year earnings growth is negative, it can't be compared to the IN Chemicals industry average.

value

Pros

• Polyplex is good value based on assets compared to the IN Chemicals industry average.
• Polyplex is good value based on expected growth next year.
• Polyplex is good value based on earnings compared to the IN Chemicals industry average.
• Polyplex is good value based on earnings compared to the India market.

Cons

• Polyplex's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Polyplex's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• 524051 underperformed the Chemicals industry which returned 2.2% over the past year.
• 524051 underperformed the Market in India which returned -14.5% over the past year.
• BSE:524051 is up 1.7% underperforming the Chemicals industry which returned 6.9% over the past month.
• BSE:524051 is up 1.7% underperforming the market in India which returned 8% over the past month.