Tamil Nadu Newsprint & Papers Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (2.7x coverage).
• Tamil Nadu Newsprint and Papers's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Tamil Nadu Newsprint and Papers'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

• Tamil Nadu Newsprint and Papers is profitable, therefore cash runway is not a concern.
• Tamil Nadu Newsprint and Papers is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (28.4%, greater than 20% of total debt).
• The level of debt compared to net worth has been reduced over the past 5 years (148.8% vs 95.4% today).

Cons

• Tamil Nadu Newsprint and Papers's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Debt is not covered by short term assets, assets are 0.9x debt.
• Tamil Nadu Newsprint and Papers's long term commitments exceed its cash and other short term assets.
• Interest payments on debt are not well covered by earnings (EBIT is 2.8x annual interest expense, ideally 3x coverage).
• Tamil Nadu Newsprint and Papers's level of debt (95.4%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• S.'s remuneration is about average for companies of similar size in India.
• S.'s compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Tamil Nadu Newsprint and Papers management team is about average.

Cons

• The average tenure for the Tamil Nadu Newsprint and Papers board of directors is less than 3 years, this suggests a new board.

misc

Pros

Cons

• Tamil Nadu Newsprint and Papers is not covered by any analysts.
• Tamil Nadu Newsprint and Papers has significant price volatility in the past 3 months.

past

Pros

• Tamil Nadu Newsprint and Papers's 1-year earnings growth exceeds its 5-year average (24.3% vs -17.9%)
• Tamil Nadu Newsprint and Papers has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Tamil Nadu Newsprint and Papers's earnings growth has exceeded the IN Forestry industry average in the past year (24.3% vs 4.1%).

Cons

• Tamil Nadu Newsprint and Papers's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
• Tamil Nadu Newsprint and Papers used its assets less efficiently than the IN Forestry industry average last year based on Return on Assets.
• Tamil Nadu Newsprint and Papers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Tamil Nadu Newsprint and Papers's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Tamil Nadu Newsprint and Papers's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Tamil Nadu Newsprint and Papers is good value based on assets compared to the IN Forestry industry average.
• Tamil Nadu Newsprint and Papers is good value based on earnings compared to the IN Forestry industry average.
• Tamil Nadu Newsprint and Papers is good value based on earnings compared to the India market.
• TNPL outperformed the Forestry industry which returned -48.1% over the past year.
• NSEI:TNPL is up 10.9% outperforming the Forestry industry which returned 7.8% over the past month.
• NSEI:TNPL is up 10.9% outperforming the market in India which returned 8% over the past month.

Cons

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