Growth Ratio Summary

Growth Score : 8.00

Ducol Organics & Colours Ltd demonstrates strong growth momentum. Significant increases in operating profit, EPS, asset, and net income growth rates indicate robust expansion and improved profitability. The Revenue growth is negative, which offsets the positives to some extent. The company's ability to substantially increase its earnings and asset base positions it well for future success. Consistent focus on strategic initiatives will be essential to sustaining this growth trajectory.

Financial Ratio Summary

Financial Score : 2.80

The financial ratios present a mixed view of Ducol Organics & Colours Ltd. While cash earnings per share are within a reasonable range, adjusted earnings per share, book value per share, and dividend per share are low. Capital expenditures are also relatively high. This suggests that while the company has some capacity to generate cash earnings, its overall financial performance and shareholder returns need improvement. The large capital expenditures could be a burden.

Profitability Ratio Summary

Profitability Score : 9.60

Ducol Organics & Colours Ltd demonstrates strong profitability. High gross profit margin, ROCE, ROE, operating margin, and net margin indicate effective cost management and strong earnings generation. The company's ability to consistently generate high profits from its operations and investments positions it well for future growth. The company's strong profitability metrics showcase its overall financial health and operational efficiency.

Efficiency Ratio Summary

Efficiency Score : 4.00

The efficiency ratios reveal some operational challenges for Ducol Organics & Colours Ltd. While the receivables turnover and receivable days are within an acceptable range, the fixed asset and capital turnover ratios are low, which indicates underutilization of assets. The inventory turnover ratio is also low, coupled with a high days sales in inventory, suggesting slow-moving inventory. These issues suggest that the company should focus on optimizing asset utilization and inventory management to improve overall efficiency.

Coverage Ratio Summary

Coverage Score : 5.60

The coverage ratios indicate mixed performance for Ducol Organics & Colours Ltd. While the interest coverage ratio is adequate, suggesting the company can meet its interest obligations, the equity dividend coverage ratio is low. This is because the company has not been paying out dividend in recent years. Therefore, the company's ability to provide returns to equity shareholders is limited.

Solvency Ratio Summary

Solvency Score : 10.00

Ducol Organics & Colours Ltd exhibits excellent solvency. Low debt and high equity levels suggest a strong financial foundation and reduced risk of financial distress. This indicates the company relies more on equity than debt to finance its assets. This makes the company less vulnerable to economic downturns. The company's robust equity base provides a solid cushion against potential losses, ensuring long-term financial sustainability.

Liquidity Ratio Summary

Liquidity Score : 8.30

The company's liquidity position reveals a mixed performance. While quick and cash ratios suggest a strong ability to meet short-term obligations with highly liquid assets, the current ratio indicates adequate but not exceptional liquidity. The operating cash flow ratio is relatively low, which could pose challenges in covering current liabilities with operating cash flows. This suggests that while the company has sufficient liquid assets, its ability to generate cash from operations to cover short-term liabilities needs enhancement.