Porwal Auto Components Analysis

dividend

Pros

• Porwal Auto Components's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Porwal Auto Components's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividend payments have increased, but Porwal Auto Components only paid a dividend in the past 4 years.
• The company is paying a dividend however it is incurring a loss.
• Whilst dividend payments have been stable, Porwal Auto Components has been paying a dividend for less than 10 years.

health

Pros

• Porwal Auto Components is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Porwal Auto Components has been profitable on average in the past, therefore cash runway is not a concern.
• Porwal Auto Components has been profitable on average in the past, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (32.1%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.4x debt.
• Porwal Auto Components'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 (28.9% vs 22.2% today).
• Porwal Auto Components's level of debt (22.2%) compared to net worth is satisfactory (less than 40%).

Cons

• Porwal Auto Components is making a loss, therefore interest payments are not well covered by earnings.
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Porwal Auto Components board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Surendra Kumar's remuneration is lower than average for companies of similar size in India.
• The average tenure for the Porwal Auto Components management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• Surendra Kumar's compensation has increased whilst company is loss making.

misc

Pros

Cons

• Porwal Auto Components is not covered by any analysts.
• Porwal Auto Components has significant price volatility in the past 3 months.

past

Pros

Cons

• Unable to compare Porwal Auto Components's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Porwal Auto Components does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
• Porwal Auto Components used its assets less efficiently than the IN Auto Components industry average last year based on Return on Assets.
• It is difficult to establish if Porwal Auto Components improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Porwal Auto Components has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Porwal Auto Components's 1-year growth to the IN Auto Components industry average as it is not currently profitable.

value

Pros

• Porwal Auto Components is good value based on assets compared to the IN Auto Components industry average.
• BSE:532933 is up 25.8% outperforming the Auto Components industry which returned 13.2% over the past month.
• BSE:532933 is up 25.8% outperforming the market in India which returned 8% over the past month.

Cons

• Porwal Auto Components's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Porwal Auto Components's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Porwal Auto Components is loss making, we can't compare its value to the IN Auto Components industry average.
• Porwal Auto Components is loss making, we can't compare the value of its earnings to the India market.
• 532933 underperformed the Auto Components industry which returned -22.4% over the past year.
• 532933 underperformed the Market in India which returned -14.5% over the past year.