Zuari Agro Chemicals Analysis

dividend

Pros

Cons

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

health

Pros

• Whilst loss making Zuari Agro Chemicals has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 4% per year.
• Whilst loss making Zuari Agro Chemicals 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 (33.6%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.3x debt.
• Zuari Agro Chemicals'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 (315.7% vs 241.9% today).

Cons

• Zuari Agro Chemicals's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Zuari Agro Chemicals's level of debt (241.9%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Zuari Agro Chemicals board of directors is about average.

Cons

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

misc

Pros

Cons

• Zuari Agro Chemicals is not covered by any analysts.
• Zuari Agro Chemicals has significant price volatility in the past 3 months.

past

Pros

Cons

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

value

Pros

• Zuari Agro Chemicals's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Zuari Agro Chemicals's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Zuari Agro Chemicals is good value based on assets compared to the IN Chemicals industry average.
• NSEI:ZUARI is up 28.1% outperforming the Chemicals industry which returned 6.9% over the past month.
• NSEI:ZUARI is up 28.1% outperforming the market in India which returned 8% over the past month.

Cons

• Zuari Agro Chemicals is loss making, we can't compare its value to the IN Chemicals industry average.
• Zuari Agro Chemicals is loss making, we can't compare the value of its earnings to the India market.
• ZUARI underperformed the Chemicals industry which returned 2.2% over the past year.
• ZUARI underperformed the Market in India which returned -14.5% over the past year.