Transformers & Rectifiers India Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Transformers & Rectifiers (India) has not reported any payouts.
• Unable to evaluate Transformers & Rectifiers (India)'s dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Transformers & Rectifiers (India)'s dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Transformers & Rectifiers (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Transformers & Rectifiers (India) is profitable, therefore cash runway is not a concern.
• Transformers & Rectifiers (India) is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (68.7%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 2.6x debt.
• Transformers & Rectifiers (India)'s cash and other short term assets cover its long term commitments.

Cons

• The level of debt compared to net worth has increased over the past 5 years (46.8% vs 75.6% today).
• Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).
• Transformers & Rectifiers (India)'s level of debt (75.6%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The average tenure for the Transformers & Rectifiers (India) board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Satyen's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• Satyen's remuneration is higher than average for companies of similar size in India.
• The average tenure for the Transformers & Rectifiers (India) management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• Transformers & Rectifiers (India) is not covered by any analysts.
• Transformers & Rectifiers (India) has significant price volatility in the past 3 months.

past

Pros

• Transformers & Rectifiers (India)'s 1-year earnings growth exceeds its 5-year average (69.8% vs 26.5%)
• Transformers & Rectifiers (India) has delivered over 20% year on year earnings growth in the past 5 years.
• Transformers & Rectifiers (India)'s earnings growth has exceeded the IN Electrical industry average in the past year (69.8% vs 11.7%).

Cons

• Transformers & Rectifiers (India) used its assets less efficiently than the IN Electrical industry average last year based on Return on Assets.
• Transformers & Rectifiers (India)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Transformers & Rectifiers (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Transformers & Rectifiers (India)'s share price is below the future cash flow value, and at a moderate discount (> 20%).
• Transformers & Rectifiers (India)'s share price is below the future cash flow value, and at a substantial discount (> 40%).
• Transformers & Rectifiers (India) is good value based on assets compared to the IN Electrical industry average.
• 532928 outperformed the Electrical industry which returned -33.5% over the past year.
• BSE:532928 is up 15.7% outperforming the Electrical industry which returned 9.3% over the past month.
• BSE:532928 is up 15.7% outperforming the market in India which returned 8% over the past month.

Cons

• Transformers & Rectifiers (India) is overvalued based on earnings compared to the IN Electrical industry average.
• Transformers & Rectifiers (India) is overvalued based on earnings compared to the India market.
• 532928 underperformed the Market in India which returned -14.5% over the past year.