Walchandnagar Industries Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Walchandnagar Industries has not reported any payouts.
• Unable to evaluate Walchandnagar Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Walchandnagar Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Walchandnagar Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Whilst loss making Walchandnagar Industries has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -50.2% per year.
• Whilst loss making Walchandnagar Industries has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
• Debt is well covered by operating cash flow (28.2%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.7x debt.
• Walchandnagar Industries'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 (52.3% vs 121.2% today).
• Walchandnagar Industries is making a loss, therefore interest payments are not well covered by earnings.
• Walchandnagar Industries's level of debt (121.2%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Walchandnagar Industries board of directors is about average.

Cons

• Chirag's remuneration is higher than average for companies of similar size in India.
• Chirag's compensation has increased whilst company is loss making.
• The average tenure for the Walchandnagar Industries management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• Walchandnagar Industries is not covered by any analysts.
• Walchandnagar Industries has significant price volatility in the past 3 months.

past

Pros

Cons

• Unable to compare Walchandnagar Industries's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Walchandnagar Industries does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
• Walchandnagar Industries used its assets less efficiently than the IN Machinery industry average last year based on Return on Assets.
• It is difficult to establish if Walchandnagar Industries 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 Walchandnagar Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Walchandnagar Industries's 1-year growth to the IN Machinery industry average as it is not currently profitable.

value

Pros

• Walchandnagar Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Walchandnagar Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Walchandnagar Industries is good value based on assets compared to the IN Machinery industry average.
• NSEI:WALCHANNAG is up 34.4% outperforming the Machinery industry which returned 8.3% over the past month.
• NSEI:WALCHANNAG is up 34.4% outperforming the market in India which returned 8% over the past month.

Cons

• Walchandnagar Industries is loss making, we can't compare its value to the IN Machinery industry average.
• Walchandnagar Industries is loss making, we can't compare the value of its earnings to the India market.
• WALCHANNAG underperformed the Machinery industry which returned -23.7% over the past year.
• WALCHANNAG underperformed the Market in India which returned -14.5% over the past year.