Sarla Performance Fibers Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (3.7x coverage).
• Sarla Performance Fibers's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Sarla Performance Fibers'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%).

health

Pros

• Sarla Performance Fibers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Sarla Performance Fibers is profitable, therefore cash runway is not a concern.
• Sarla Performance Fibers is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1x debt.
• Sarla Performance Fibers'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 (120.6% vs 84.9% today).
• Sarla Performance Fibers earns more interest than it pays, coverage of interest payments is not a concern.

Cons

• Debt is not well covered by operating cash flow (11.7%, less than 20% of total debt).
• Sarla Performance Fibers's level of debt (84.9%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

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

Cons

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

misc

Pros

Cons

• Sarla Performance Fibers is not covered by any analysts.
• Sarla Performance Fibers has significant price volatility in the past 3 months.

past

Pros

• Sarla Performance Fibers's 1-year earnings growth exceeds its 5-year average (195.9% vs -8.1%)
• Sarla Performance Fibers's earnings growth has exceeded the IN Luxury industry average in the past year (195.9% vs 8.3%).

Cons

• Sarla Performance Fibers's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
• Sarla Performance Fibers used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
• Sarla Performance Fibers's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Sarla Performance Fibers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Sarla Performance Fibers is good value based on earnings compared to the IN Luxury industry average.
• Sarla Performance Fibers is good value based on earnings compared to the India market.
• BSE:526885 is up 25.6% outperforming the Luxury industry which returned 9.8% over the past month.
• BSE:526885 is up 25.6% outperforming the market in India which returned 8% over the past month.

Cons

• Sarla Performance Fibers's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Sarla Performance Fibers's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Sarla Performance Fibers is overvalued based on assets compared to the IN Luxury industry average.
• 526885 underperformed the Luxury industry which returned -22.1% over the past year.
• 526885 underperformed the Market in India which returned -14.5% over the past year.