Ponni Sugars (Erode) Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (9x coverage).
• Ponni Sugars (Erode)'s pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• No dividend growth in 10 years.
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Ponni Sugars (Erode)'s dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Ponni Sugars (Erode) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Ponni Sugars (Erode) is profitable, therefore cash runway is not a concern.
• Ponni Sugars (Erode) is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (91.1%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 6.5x debt.
• Ponni Sugars (Erode)'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 (64.9% vs 6.9% today).
• Interest payments on debt are well covered by earnings (EBIT is 12.7x coverage).
• Ponni Sugars (Erode)'s level of debt (6.9%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The average tenure for the Ponni Sugars (Erode) board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• N.'s compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

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

misc

Pros

Cons

• Ponni Sugars (Erode) is not covered by any analysts.
• Ponni Sugars (Erode) has significant price volatility in the past 3 months.

past

Pros

• Ponni Sugars (Erode)'s 1-year earnings growth exceeds its 5-year average (266% vs 34.7%)
• Ponni Sugars (Erode) has delivered over 20% year on year earnings growth in the past 5 years.
• Ponni Sugars (Erode) used its assets more efficiently than the IN Food industry average last year based on Return on Assets.
• Ponni Sugars (Erode) has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Ponni Sugars (Erode)'s earnings growth has exceeded the IN Food industry average in the past year (266% vs 20.5%).

Cons

• Ponni Sugars (Erode) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Ponni Sugars (Erode) is good value based on assets compared to the IN Food industry average.
• Ponni Sugars (Erode) is good value based on earnings compared to the IN Food industry average.
• Ponni Sugars (Erode) is good value based on earnings compared to the India market.
• 532460 outperformed the Food industry which returned 18.8% over the past year.
• 532460 outperformed the Market in India which returned -14.5% over the past year.
• BSE:532460 is up 22.9% outperforming the Food industry which returned 5% over the past month.
• BSE:532460 is up 22.9% outperforming the market in India which returned 8% over the past month.

Cons

• Ponni Sugars (Erode)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Ponni Sugars (Erode)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).