Seshasayee Paper & Boards Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (8.3x coverage).
• Seshasayee Paper and Boards's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Seshasayee Paper and Boards's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Seshasayee Paper and Boards is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Seshasayee Paper and Boards is profitable, therefore cash runway is not a concern.
• Seshasayee Paper and Boards is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (2510%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 90.5x debt.
• Seshasayee Paper and Boards'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 (79.4% vs 0.6% today).
• Interest payments on debt are well covered by earnings (EBIT is 33.7x coverage).
• Seshasayee Paper and Boards's level of debt (0.6%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

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

Cons

• Kasi's remuneration is higher than average for companies of similar size in India.
• The average tenure for the Seshasayee Paper and Boards management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• Seshasayee Paper and Boards is not covered by any analysts.
• Seshasayee Paper and Boards has significant price volatility in the past 3 months.

past

Pros

• Seshasayee Paper and Boards has delivered over 20% year on year earnings growth in the past 5 years.
• Seshasayee Paper and Boards used its assets more efficiently than the IN Forestry industry average last year based on Return on Assets.

Cons

• Seshasayee Paper and Boards's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Seshasayee Paper and Boards's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Seshasayee Paper and Boards has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Seshasayee Paper and Boards's 1-year earnings growth is negative, it can't be compared to the IN Forestry industry average.

value

Pros

• Seshasayee Paper and Boards is good value based on earnings compared to the IN Forestry industry average.
• Seshasayee Paper and Boards is good value based on earnings compared to the India market.
• SESHAPAPER outperformed the Forestry industry which returned -48.1% over the past year.
• NSEI:SESHAPAPER is up 27.5% outperforming the Forestry industry which returned 7.8% over the past month.
• NSEI:SESHAPAPER is up 27.5% outperforming the market in India which returned 8% over the past month.

Cons

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