Godawari Power & Ispat Ltd

Growth Ratio Summary

Growth Score : 6.00

The company exhibits strong growth in operating profit, earnings per share, and assets, indicating robust expansion and profitability. However, revenue growth and net income growth are lagging, which could indicate underlying issues in sales or cost management. Overall, the company shows promising growth potential, driven by solid operational improvements and asset expansion.

Financial Ratio Summary

Financial Score : 4.80

The company's financial ratios show a mixed performance. While capital expenditure is well-managed, adjusted EPS is low. Cash EPS and DPS are at reasonable levels, and the book value per share is average. Enhancing adjusted EPS and maintaining stable cash EPS and DPS could improve overall financial health.

Profitability Ratio Summary

Profitability Score : 4.80

The company's profitability metrics present a mixed performance. While return on capital employed and return on assets are strong, gross profit margin, return on equity, operating margin, and net margin are low. This indicates efficient use of capital and assets, but struggles in converting revenue to profits. Improving margins and overall profitability is essential.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency in managing its assets presents a mixed picture. While the days sales in inventory and receivable days are reasonably average, the turnover ratios for fixed assets, inventory, receivables, and capital are concerning. This indicates potential challenges in utilizing assets effectively to generate revenue. Improving asset management could enhance overall performance.

Coverage Ratio Summary

Coverage Score : 6.80

The company's coverage ratios present a mixed outlook. The interest coverage ratio is strong, indicating a solid ability to meet interest obligations. However, the equity dividend coverage ratio is low, which suggests that the company's ability to cover dividends with equity is limited. Overall, the company demonstrates good financial stability in handling its debt obligations.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is very strong, indicating a robust financial structure with a healthy reliance on equity. This suggests the company is well-positioned to manage its long-term obligations and has a solid foundation for future growth. This financial stability can attract investors and support strategic initiatives.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position raises concerns as all the metrics indicate poor short-term financial health. This suggests the company may face challenges in meeting its immediate obligations. While a conservative approach to cash management could contribute to low liquidity ratios, it is essential to ensure sufficient working capital for smooth operations.