The Peria Karamalai Tea & Produce Company Analysis

dividend

Pros

• Peria Karamalai Tea and Produce's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Peria Karamalai Tea and Produce has only been paying a dividend for 8 years, and since then dividends per share have fallen.
• The company is paying a dividend however it is incurring a loss.
• Peria Karamalai Tea and Produce has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
• Peria Karamalai Tea and Produce's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Peria Karamalai Tea and Produce is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Peria Karamalai Tea and Produce has been profitable on average in the past, therefore cash runway is not a concern.
• Peria Karamalai Tea and Produce has been profitable on average in the past, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.7x debt.
• Peria Karamalai Tea and Produce's cash and other short term assets cover its long term commitments.
• Peria Karamalai Tea and Produce's level of debt (14.1%) compared to net worth is satisfactory (less than 40%).

Cons

• Debt is not well covered by operating cash flow (3.4%, less than 20% of total debt).
• The level of debt compared to net worth has increased over the past 5 years (5.5% vs 14.1% today).
• Peria Karamalai Tea and Produce is making a loss, therefore interest payments are not well covered by earnings.
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Peria Karamalai Tea and Produce board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• The tenure for the Peria Karamalai Tea and Produce management team is about average.

Cons

• Sanjeev's remuneration is higher than average for companies of similar size in India.
• Sanjeev's compensation has increased whilst company is loss making.

misc

Pros

Cons

• Peria Karamalai Tea and Produce is not covered by any analysts.
• Peria Karamalai Tea and Produce has significant price volatility in the past 3 months.

past

Pros

Cons

• Unable to compare Peria Karamalai Tea and Produce's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Peria Karamalai Tea and Produce does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
• It is difficult to establish if Peria Karamalai Tea and Produce has efficiently used its assets last year compared to the IN Food industry average (Return on Assets) as it is loss-making.
• It is difficult to establish if Peria Karamalai Tea and Produce improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Peria Karamalai Tea and Produce has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Peria Karamalai Tea and Produce's 1-year growth to the IN Food industry average as it is not currently profitable.

value

Pros

• Peria Karamalai Tea and Produce is good value based on assets compared to the IN Food industry average.

Cons

• Peria Karamalai Tea and Produce's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Peria Karamalai Tea and Produce's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Peria Karamalai Tea and Produce is loss making, we can't compare its value to the IN Food industry average.
• Peria Karamalai Tea and Produce is loss making, we can't compare the value of its earnings to the India market.
• PKTEA underperformed the Food industry which returned 18.8% over the past year.
• PKTEA underperformed the Market in India which returned -14.5% over the past year.
• NSEI:PKTEA is up 2% underperforming the Food industry which returned 5% over the past month.
• NSEI:PKTEA is up 2% underperforming the market in India which returned 8% over the past month.