Thangamayil Jewellery Analysis

dividend

Pros

• Dividends paid are well covered by earnings (6.5x coverage).
• Thangamayil Jewellery's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

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

health

Pros

• Thangamayil Jewellery is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Thangamayil Jewellery is profitable, therefore cash runway is not a concern.
• Thangamayil Jewellery is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (34.4%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 2.6x debt.
• Thangamayil Jewellery'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 (141.2% vs 118% today).
• Interest payments on debt are well covered by earnings (EBIT is 6x coverage).

Cons

• Thangamayil Jewellery's level of debt (118%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Thangamayil Jewellery board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Balarama'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 Thangamayil Jewellery individual insiders in the past 3 months.

Cons

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

misc

Pros

Cons

• Thangamayil Jewellery is not covered by any analysts.
• Thangamayil Jewellery has significant price volatility in the past 3 months.

past

Pros

• Thangamayil Jewellery's 1-year earnings growth exceeds its 5-year average (57.6% vs 55.6%)
• Thangamayil Jewellery has delivered over 20% year on year earnings growth in the past 5 years.
• Thangamayil Jewellery used its assets more efficiently than the IN Specialty Retail industry average last year based on Return on Assets.
• Thangamayil Jewellery has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Thangamayil Jewellery's earnings growth has exceeded the IN Specialty Retail industry average in the past year (57.6% vs 16.8%).

Cons

• Whilst Thangamayil Jewellery has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.

value

Pros

• Thangamayil Jewellery's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Thangamayil Jewellery's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Thangamayil Jewellery is good value based on earnings compared to the IN Specialty Retail industry average.
• Thangamayil Jewellery is good value based on earnings compared to the India market.
• THANGAMAYL outperformed the Specialty Retail industry which returned -63.5% over the past year.
• THANGAMAYL matched the India Market (-14.5%) over the past year.
• NSEI:THANGAMAYL is up 10.7% outperforming the market in India which returned 8% over the past month.

Cons

• Thangamayil Jewellery is overvalued based on assets compared to the IN Specialty Retail industry average.
• NSEI:THANGAMAYL is up 10.7% underperforming the Specialty Retail industry which returned 12.6% over the past month.