Gujarat Apollo Industries Ltd

Growth Ratio Summary

Growth Score : 4.00

The company's growth performance is mixed, with strong operating profit and asset growth offset by declines in revenue and earnings per share. This suggests that while the company is expanding its operations and improving profitability, it is struggling to increase sales and shareholder value. The company's growth trajectory is uncertain.

Financial Ratio Summary

Financial Score : 2.60

The company's financial metrics present a mixed picture. While cash earnings per share are reasonable, adjusted earnings per share, book value, and dividend per share are low, and capital expenditures are high. This indicates potential challenges in profitability and shareholder value creation. The company may need to focus on improving its earnings and dividend policies.

Profitability Ratio Summary

Profitability Score : 6.80

The company's profitability performance is varied. While returns on capital and equity are relatively strong, gross and operating margins are negative, and the return on assets is weak. The company's net margin is positive. This suggests that the company needs to address its cost structure and operational efficiency to improve overall profitability.

Efficiency Ratio Summary

Efficiency Score : 2.00

The company is facing significant challenges in utilizing its assets efficiently. Low turnover ratios and extended collection periods suggest operational inefficiencies that need to be addressed. This indicates potential areas for improvement in asset management, inventory control, and receivables collection.

Coverage Ratio Summary

Coverage Score : 8.40

The company demonstrates a strong capacity to meet its interest obligations, suggesting financial stability and low risk. However, its dividend coverage is average, indicating a moderate ability to sustain dividend payments. Overall, the company's coverage ratios are solid, but there is room for improvement in dividend coverage.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits an exceptionally strong financial structure, with minimal debt relative to its equity and assets. This indicates a very low risk of financial distress and a high degree of financial stability. This strong solvency is a significant advantage for long-term sustainability.

Liquidity Ratio Summary

Liquidity Score : 7.14

The company demonstrates strong short-term financial health, indicating it can comfortably meet its immediate obligations. While cash and operating cash flow need improvement, the high current and quick ratios suggest a large buffer of liquid assets. This is a positive sign for investors, but the company may need to utilize its assets more efficiently.