Vidhi Specialty Food Ingredients Analysis

dividend

Pros

• Dividends paid are well covered by earnings (6.3x coverage).
• Vidhi Specialty Food Ingredients's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividend payments have increased, but Vidhi Specialty Food Ingredients only paid a dividend in the past 8 years.
• Whilst dividend payments have been stable, Vidhi Specialty Food Ingredients has been paying a dividend for less than 10 years.
• Vidhi Specialty Food Ingredients's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Vidhi Specialty Food Ingredients is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Vidhi Specialty Food Ingredients is profitable, therefore cash runway is not a concern.
• Vidhi Specialty Food Ingredients is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (136.9%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 4.4x debt.
• Vidhi Specialty Food Ingredients'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 (120.8% vs 24.9% today).
• Interest payments on debt are well covered by earnings (EBIT is 27.2x coverage).
• Vidhi Specialty Food Ingredients's level of debt (24.9%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The average tenure for the Vidhi Specialty Food Ingredients board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Bipin's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Vidhi Specialty Food Ingredients management team is about average.

Cons

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

misc

Pros

Cons

• Vidhi Specialty Food Ingredients is not covered by any analysts.
• Vidhi Specialty Food Ingredients has significant price volatility in the past 3 months.

past

Pros

• Vidhi Specialty Food Ingredients's 1-year earnings growth exceeds its 5-year average (23.7% vs 20.4%)
• Vidhi Specialty Food Ingredients has delivered over 20% year on year earnings growth in the past 5 years.
• Vidhi Specialty Food Ingredients used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
• Vidhi Specialty Food Ingredients has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Vidhi Specialty Food Ingredients has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• Vidhi Specialty Food Ingredients's earnings growth has exceeded the IN Chemicals industry average in the past year (23.7% vs 9.1%).

Cons

value

Pros

• Vidhi Specialty Food Ingredients's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Vidhi Specialty Food Ingredients is good value based on earnings compared to the IN Chemicals industry average.
• Vidhi Specialty Food Ingredients is good value based on earnings compared to the India market.
• 531717 outperformed the Market in India which returned -14.5% over the past year.

Cons

• Vidhi Specialty Food Ingredients's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• Vidhi Specialty Food Ingredients is overvalued based on assets compared to the IN Chemicals industry average.
• 531717 underperformed the Chemicals industry which returned 2.2% over the past year.
• BSE:531717 is up 5.6% underperforming the Chemicals industry which returned 6.9% over the past month.
• BSE:531717 is up 5.6% underperforming the market in India which returned 8% over the past month.