Sudarshan Chemical Industries Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (6.3x coverage).
• Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
• Dividends per share have been stable in the past 10 years.
• Sudarshan Chemical Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Sudarshan Chemical Industries's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Cash flow for Sudarshan Chemical Industries is expected to increase by more than 50% in 2 years time.
• Sudarshan Chemical Industries's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Sudarshan Chemical Industries is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
• Performance (ROE) is expected to be above the current IN Chemicals industry average.
• Sudarshan Chemical Industries's revenue growth is expected to exceed the India market average.

Cons

• Sudarshan Chemical Industries's earnings are expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
• Sudarshan Chemical Industries's earnings growth is positive but not above the India market average.
• Sudarshan Chemical Industries's earnings are expected to decrease over the next year.
• Sudarshan Chemical Industries's net income is expected to increase but not above the 50% threshold in 2 years time.
• A decline in Sudarshan Chemical Industries's performance (ROE) is expected over the next 3 years.
• Sudarshan Chemical Industries's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Sudarshan Chemical Industries's revenue is expected to grow by 12.9% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Sudarshan Chemical Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Sudarshan Chemical Industries is profitable, therefore cash runway is not a concern.
• Sudarshan Chemical Industries is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (23.9%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 2.3x debt.
• Sudarshan Chemical 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 (164.2% vs 68.2% today).
• Interest payments on debt are well covered by earnings (EBIT is 19.3x coverage).

Cons

• Sudarshan Chemical Industries's level of debt (68.2%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Sudarshan Chemical Industries board of directors is about average.
• Rajesh's remuneration is about average for companies of similar size in India.
• Rajesh's compensation has been consistent with company performance over the past year, both up more than 20%.
• More shares have been bought than sold by Sudarshan Chemical Industries individual insiders in the past 3 months.

Cons

past

Pros

• Sudarshan Chemical Industries's 1-year earnings growth exceeds its 5-year average (22.5% vs 17.5%)
• Sudarshan Chemical Industries's year on year earnings growth rate has been positive over the past 5 years.
• Sudarshan Chemical Industries used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Sudarshan Chemical Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• Sudarshan Chemical Industries's earnings growth has exceeded the IN Chemicals industry average in the past year (22.5% vs 9.1%).

Cons

• Sudarshan Chemical Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

value

Pros

• SUDARSCHEM outperformed the Chemicals industry which returned 2.2% over the past year.
• SUDARSCHEM outperformed the Market in India which returned -14.5% over the past year.

Cons

• Sudarshan Chemical Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Sudarshan Chemical Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Sudarshan Chemical Industries is overvalued based on assets compared to the IN Chemicals industry average.
• Sudarshan Chemical Industries is poor value based on expected growth next year.
• Sudarshan Chemical Industries is overvalued based on earnings compared to the IN Chemicals industry average.
• Sudarshan Chemical Industries is overvalued based on earnings compared to the India market.
• NSEI:SUDARSCHEM is up 2.2% underperforming the Chemicals industry which returned 6.9% over the past month.
• NSEI:SUDARSCHEM is up 2.2% underperforming the market in India which returned 8% over the past month.