Ahluwalia Contracts (India) Ltd

Growth Ratio Summary

Growth Score : 10.00

The company showcases impressive growth across all key metrics. Strong revenue growth, coupled with robust increases in operating profit, earnings per share, asset base, and net income, reflects a dynamic and expanding business. This positions the company favorably for sustained success and market leadership. Maintaining this growth trajectory will depend on strategic investments and effective operational management.

Financial Ratio Summary

Financial Score : 6.20

The company demonstrates strong earnings per share and book value per share, indicating solid financial performance and asset value. However, low dividend per share and high capital expenditures suggest potential areas for improvement in shareholder returns and capital allocation. Balancing these factors will be crucial for optimizing financial strategy.

Profitability Ratio Summary

Profitability Score : 10.00

The company exhibits exceptional profitability, as evidenced by high gross profit margin, ROCE, ROE, ROA, operating margin, and net margin. This reflects efficient operations, effective capital utilization, and strong earnings generation. The company's ability to consistently deliver high profits positions it favorably within its industry. Sustaining these profitability levels will depend on maintaining operational efficiencies and strategic pricing.

Efficiency Ratio Summary

Efficiency Score : 6.33

The company demonstrates mixed efficiency in utilizing its assets. The fixed asset turnover ratio indicates effective use of fixed assets, while the inventory turnover ratio reflects reasonably efficient inventory management. However, longer receivable days and a low capital turnover ratio suggest potential challenges in collecting payments and optimizing capital deployment. Improving these areas could enhance overall operational efficiency.

Coverage Ratio Summary

Coverage Score : 10.00

The company exhibits a very strong ability to meet its interest and dividend obligations. High coverage ratios indicate a robust capacity to handle financial commitments, ensuring financial stability and investor confidence. This provides a solid foundation for sustainable growth and shareholder returns. The company's financial health is further reinforced by its ability to comfortably cover its financial obligations.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits exceptional financial stability. Low debt ratios across the board indicate a conservative approach to leverage, while a high equity ratio reflects strong financial footing. This minimizes financial risk and provides a solid foundation for future growth and stability. The company's reliance on equity over debt positions it favorably for long-term sustainability.

Liquidity Ratio Summary

Liquidity Score : 7.38

The company is reasonably able to meet its short-term obligations. The quick ratio indicates a strong capacity to cover immediate liabilities with its most liquid assets. However, the operating cash flow ratio suggests potential challenges in generating sufficient cash from operations to cover short-term liabilities. Balancing reliance on liquid assets with operational cash generation will be vital for sustained financial health.