South India Paper Mills Analysis

dividend

Pros

• Dividends paid are thoroughly covered by earnings (7.3x coverage).
• South India Paper Mills's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• No dividend growth in 10 years.
• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• South India Paper Mills's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• South India Paper Mills is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• South India Paper Mills is profitable, therefore cash runway is not a concern.
• South India Paper Mills is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (102%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 2.1x debt.
• South India Paper Mills's cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).
• South India Paper Mills's level of debt (23.6%) compared to net worth is satisfactory (less than 40%).

Cons

• The level of debt compared to net worth has increased over the past 5 years (14.7% vs 23.6% today).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the South India Paper Mills board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Manish's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

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

misc

Pros

Cons

• South India Paper Mills is not covered by any analysts.
• South India Paper Mills has significant price volatility in the past 3 months.

past

Pros

• South India Paper Mills used its assets more efficiently than the IN Forestry industry average last year based on Return on Assets.

Cons

• South India Paper Mills's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• South India Paper Mills's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
• South India Paper Mills's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• South India Paper Mills has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• South India Paper Mills's 1-year earnings growth is negative, it can't be compared to the IN Forestry industry average.

value

Pros

• South India Paper Mills's share price is below the future cash flow value, and at a moderate discount (> 20%).
• South India Paper Mills's share price is below the future cash flow value, and at a substantial discount (> 40%).
• South India Paper Mills is good value based on assets compared to the IN Forestry industry average.
• South India Paper Mills is good value based on earnings compared to the IN Forestry industry average.
• South India Paper Mills is good value based on earnings compared to the India market.
• 516108 outperformed the Forestry industry which returned -48.1% over the past year.
• BSE:516108 is up 8.9% outperforming the Forestry industry which returned 7.8% over the past month.
• BSE:516108 is up 8.9% along with the India market (8%) over the past month.

Cons

• 516108 underperformed the Market in India which returned -14.5% over the past year.