Prakash Industries Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (11.3x coverage).
• Prakash Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Prakash Industries's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividend payments have increased, but Prakash Industries only paid a dividend in the past 9 years.
• Prakash Industries has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

health

Pros

• Prakash Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Prakash Industries is profitable, therefore cash runway is not a concern.
• Prakash Industries is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (120.4%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.3x debt.
• Prakash Industries'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 (43.2% vs 17.2% today).
• Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).
• Prakash Industries's level of debt (17.2%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

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

Cons

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

misc

Pros

Cons

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

past

Pros

• Prakash Industries has delivered over 20% year on year earnings growth in the past 5 years.
• Prakash Industries used its assets more efficiently than the IN Metals and Mining industry average last year based on Return on Assets.
• Prakash Industries has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Prakash Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Prakash Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Prakash Industries's 1-year earnings growth is negative, it can't be compared to the IN Metals and Mining industry average.

value

Pros

• Prakash Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Prakash Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Prakash Industries is good value based on assets compared to the IN Metals and Mining industry average.
• Prakash Industries is good value based on earnings compared to the IN Metals and Mining industry average.
• Prakash Industries is good value based on earnings compared to the India market.
• BSE:506022 is up 27.7% outperforming the Metals and Mining industry which returned 7.5% over the past month.
• BSE:506022 is up 27.7% outperforming the market in India which returned 8% over the past month.

Cons

• 506022 underperformed the Metals and Mining industry which returned -28.6% over the past year.
• 506022 underperformed the Market in India which returned -14.5% over the past year.