Vinyl Chemicals (I) Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (2.5x coverage).
• Dividends per share have been stable in the past 10 years.
• Vinyl Chemicals (India)'s pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Vinyl Chemicals (India)'s dividend is below the markets top 25% of dividend payers in India (3.08%).

health

Pros

• Vinyl Chemicals (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Vinyl Chemicals (India) is profitable, therefore cash runway is not a concern.
• Vinyl Chemicals (India) is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 307.2x debt.
• Vinyl Chemicals (India)'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 (1.5% vs 0.9% today).
• Vinyl Chemicals (India) earns more interest than it pays, coverage of interest payments is not a concern.
• Vinyl Chemicals (India)'s level of debt (0.9%) compared to net worth is satisfactory (less than 40%).

Cons

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

management

Pros

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

Cons

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

misc

Pros

Cons

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

past

Pros

• Vinyl Chemicals (India)'s 1-year earnings growth exceeds its 5-year average (25% vs 0.7%)
• Vinyl Chemicals (India)'s year on year earnings growth rate has been positive over the past 5 years.
• Vinyl Chemicals (India) used its assets more efficiently than the IN Trade Distributors industry average last year based on Return on Assets.
• Vinyl Chemicals (India) has improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Vinyl Chemicals (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Vinyl Chemicals (India)'s earnings growth has not exceeded the IN Trade Distributors industry average in the past year (25% vs 30.2%).

value

Pros

• 524129 outperformed the Trade Distributors industry which returned -5.6% over the past year.
• 524129 outperformed the Market in India which returned -14.5% over the past year.
• BSE:524129 is up 39.4% outperforming the Trade Distributors industry which returned 6.8% over the past month.
• BSE:524129 is up 39.4% outperforming the market in India which returned 8% over the past month.

Cons

• Vinyl Chemicals (India)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Vinyl Chemicals (India)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Vinyl Chemicals (India) is overvalued based on assets compared to the IN Trade Distributors industry average.
• Vinyl Chemicals (India) is overvalued based on earnings compared to the IN Trade Distributors industry average.
• Vinyl Chemicals (India) is overvalued based on earnings compared to the India market.