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The Indian Wood Products Company Ltd logo

The Indian Wood Products Company Ltd

NSE: BSE: 540954

34.18

(7.93%)

Wed, 04 Mar 2026, 11:21 am

The Indian Wood Products Company Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (8.6x coverage).
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Cons

  • Dividend payments have increased, but Indian Wood Products only paid a dividend in the past 2 years.
  • Whilst dividend payments have been stable, Indian Wood Products has been paying a dividend for less than 10 years.
  • Indian Wood Products's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Indian Wood Products's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • Indian Wood Products is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Indian Wood Products is profitable, therefore cash runway is not a concern.
  • Indian Wood Products is profitable, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 1.9x debt.
  • Indian Wood Products'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 (88.1% vs 18.5% today).
  • Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).
  • Indian Wood Products's level of debt (18.5%) compared to net worth is satisfactory (less than 40%).
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Cons

  • Operating cash flow is negative therefore debt is not well covered.
  • High level of physical assets or inventory.

management

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Pros

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

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

misc

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Pros

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    Cons

    • Indian Wood Products is not covered by any analysts.
    • Indian Wood Products has significant price volatility in the past 3 months.

    past

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    Pros

    • Indian Wood Products has delivered over 20% year on year earnings growth in the past 5 years.
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    Cons

    • Indian Wood Products's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Indian Wood Products used its assets less efficiently than the IN Forestry industry average last year based on Return on Assets.
    • Indian Wood Products's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Indian Wood Products has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Indian Wood Products's 1-year earnings growth is negative, it can't be compared to the IN Forestry industry average.

    value

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    Pros

    • Indian Wood Products is good value based on assets compared to the IN Forestry industry average.
    • BSE:540954 is up 12.4% outperforming the Forestry industry which returned 7.8% over the past month.
    • BSE:540954 is up 12.4% outperforming the market in India which returned 8% over the past month.
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    Cons

    • Indian Wood Products's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Indian Wood Products's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Indian Wood Products is overvalued based on earnings compared to the IN Forestry industry average.
    • Indian Wood Products is overvalued based on earnings compared to the India market.
    • 540954 underperformed the Forestry industry which returned -48.1% over the past year.
    • 540954 underperformed the Market in India which returned -14.5% over the past year.

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    Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800