Shree Rama Multi-Tech Analysis

dividend

Pros

Cons

• Unable to evaluate Shree Rama Multi-Tech's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Shree Rama Multi-Tech's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Shree Rama Multi-Tech is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Shree Rama Multi-Tech is profitable, therefore cash runway is not a concern.
• Shree Rama Multi-Tech is profitable, therefore cash runway is not a concern.
• Shree Rama Multi-Tech had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.

Cons

• Debt is not well covered by operating cash flow (18.4%, less than 20% of total debt).
• Debt is not covered by short term assets, assets are 0.6x debt.
• Shree Rama Multi-Tech's long term commitments exceed its cash and other short term assets.
• Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
• Shree Rama Multi-Tech's level of debt (457.7%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Shree Rama Multi-Tech board of directors is about average.
• Shailesh's compensation has increased in line with Shree Rama Multi-Tech recently becoming profitable.
• The tenure for the Shree Rama Multi-Tech management team is about average.

Cons

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

misc

Pros

Cons

• Shree Rama Multi-Tech is not covered by any analysts.
• Shree Rama Multi-Tech has significant price volatility in the past 3 months.

past

Pros

• Shree Rama Multi-Tech's year on year earnings growth rate has been positive over the past 5 years.
• Shree Rama Multi-Tech used its assets more efficiently than the IN Packaging industry average last year based on Return on Assets.
• Shree Rama Multi-Tech has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Shree Rama Multi-Tech has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
• Whilst Shree Rama Multi-Tech made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
• Shree Rama Multi-Tech has become profitable in the last year making it difficult to compare the IN Packaging industry average.

value

Pros

• Shree Rama Multi-Tech's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Shree Rama Multi-Tech is good value based on earnings compared to the IN Packaging industry average.
• Shree Rama Multi-Tech is good value based on earnings compared to the India market.
• SHREERAMA outperformed the Packaging industry which returned -14.7% over the past year.
• SHREERAMA outperformed the Market in India which returned -14.5% over the past year.
• NSEI:SHREERAMA is up 36.4% outperforming the Packaging industry which returned 6.3% over the past month.
• NSEI:SHREERAMA is up 36.4% outperforming the market in India which returned 8% over the past month.

Cons

• Shree Rama Multi-Tech's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• Shree Rama Multi-Tech is overvalued based on assets compared to the IN Packaging industry average.