Dhampur Sugar Mills Ltd

Growth Ratio Summary

Growth Score : 2.80

The company's growth metrics are concerning. Revenue, operating profit, and EPS growth rates are declining, indicating potential challenges in expanding its business and profitability. While asset growth shows some positive momentum, it's not enough to offset the negative trends in other growth indicators. Overall, the company needs to address these issues to ensure future growth and stability.

Financial Ratio Summary

Financial Score : 2.80

The company's financial metrics are concerning. Adjusted earnings per share, cash earnings per share, book value per share, dividend per share, and capital expenditures are all low. This indicates challenges in profitability, shareholder returns, and investment in future growth. Overall, the company needs to address these issues to improve its financial health and investor confidence.

Profitability Ratio Summary

Profitability Score : 9.80

The company demonstrates strong profitability. High gross profit margin, return on capital employed (ROCE), return on equity (ROE), return on assets (ROA), operating margin, and net margin indicate efficient operations and effective management. These metrics suggest that the company is generating substantial profits from its core business activities and utilizing its resources effectively. Overall, the company's profitability ratios reflect a healthy financial position.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company shows mixed efficiency. While receivables turnover and receivable days are well-managed, fixed asset turnover, inventory turnover, days sales in inventory, and capital turnover ratios are low. This suggests that while the company collects its receivables efficiently, it struggles with asset utilization and inventory management. Improving these areas could enhance overall operational efficiency.

Coverage Ratio Summary

Coverage Score : 5.60

The company's coverage ratios present a mixed picture. While the interest coverage ratio is adequate, indicating the company can meet its interest obligations, the equity dividend coverage ratio is weak. This suggests potential challenges in maintaining consistent dividend payouts to shareholders. Overall, the company needs to strengthen its ability to cover dividends to ensure investor confidence.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits a strong solvency position. Its debt ratio and debt-to-equity ratio are low, indicating a conservative approach to leverage. A high equity ratio further reinforces its financial stability, suggesting a strong base of equity financing. The debt-to-asset ratio is also low, reflecting a small proportion of assets financed by debt. Overall, the company demonstrates a solid foundation and financial resilience.

Liquidity Ratio Summary

Liquidity Score : 2.90

The company's liquidity position is concerning. While the current ratio suggests an ability to cover short-term liabilities, the quick and cash ratios indicate a struggle to meet immediate obligations without relying on inventory. This could pose challenges in managing day-to-day operations and responding to unexpected financial needs. Positive operating cash flow is a plus, but overall, the company needs to improve its short-term financial health.