Growth Ratio Summary

Growth Score : 10.00

The company exhibits strong growth across various metrics. Revenue, operating profit, EPS, asset, and net income growth rates are high, indicating robust expansion and improved profitability. This growth reflects effective strategic initiatives and operational performance. Maintaining this growth trajectory is crucial for sustaining long-term success. BEML’s consistent and balanced growth highlights its potential for continued success and value creation. The weighted average calculation underscores the importance of recent performance in driving these growth rates.

Financial Ratio Summary

Financial Score : 5.20

The company's financial ratios present a mixed picture. Adjusted EPS and book value per share are at par, indicating moderate earnings and asset value. Cash EPS is weak, reflecting lower cash generation relative to earnings. Dividend per share is good, indicating a commitment to returning value to shareholders. However, capital expenditures are high, which could strain cash flow. Managing these financial aspects effectively is crucial for sustainable financial health. BEML needs to balance shareholder returns with strategic investments to ensure long-term value creation.

Profitability Ratio Summary

Profitability Score : 9.60

The company demonstrates strong profitability across various metrics. Gross profit margin, ROCE, ROE, operating margin, and net margin are high, indicating efficient operations and effective cost management. While ROA is at par, the overall profitability ratios reflect the company's ability to generate profits from its assets and capital. Maintaining these high profitability levels is crucial for sustaining long-term financial success. As the company is generating profit from its assets, this will enhance the value for the shareholders.

Efficiency Ratio Summary

Efficiency Score : 3.00

The company's efficiency ratios are mixed, with some areas needing improvement. The fixed asset turnover ratio indicates effective utilization of fixed assets, however, other efficiency ratios like inventory turnover, receivables turnover, days sales in inventory, receivable days, and capital turnover are low. These ratios suggests that the company is facing some challenges in managing its working capital effectively. Improving these ratios would enhance operational efficiency and profitability. The weighted average calculation emphasizes the need for consistent improvements in these areas to optimize resource utilization.

Coverage Ratio Summary

Coverage Score : 10.00

The company's coverage ratios are strong, indicating a robust ability to meet its interest and dividend obligations. The interest coverage ratio is high, signifying that the company can comfortably cover its interest expenses. The equity dividend coverage ratio is also high, demonstrating a strong capacity to pay dividends to shareholders. These coverage ratios reflect financial stability and prudent financial management. The company's ability to meet its financial obligations enhances its attractiveness to investors and creditors.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is excellent, characterized by minimal debt and a strong equity base. The debt and debt-to-equity ratios are negligible, indicating a very low reliance on external borrowing. The equity ratio is high, signifying that the company's assets are primarily funded by equity. This conservative capital structure reduces financial risk and provides a stable foundation for future growth. As this is because company's assets are mainly funded by equity, this shows a strong financial stability.

Liquidity Ratio Summary

Liquidity Score : 4.76

The company's liquidity position reveals both strengths and weaknesses. Its current and quick ratios are at par, suggesting an ability to meet short-term obligations. However, the cash ratio is poor, indicating a reliance on current assets other than cash. The operating cash flow ratio is weak, reflecting some difficulty in generating cash from operations. While the company can cover its immediate liabilities, its limited cash reserves and operational cash generation could pose risks during economic downturns. The weighted average calculation highlights the need for BEML to improve its cash management strategies to enhance financial flexibility.