Hindustan Composites Ltd

Growth Ratio Summary

Growth Score : 10.00

The growth ratios reflect strong expansion in revenue, operating profit, earnings per share, assets, and net income. This indicates robust business performance and effective growth strategies. The company's consistent growth across multiple dimensions highlights its potential for future success. The weighted average calculation ensures that recent growth trends are accurately represented.

Financial Ratio Summary

Financial Score : 6.80

The financial ratios indicate a solid financial base with significant book value per share and zero capital expenditures. Adjusted and cash earnings per share are moderate, and the company provides a reasonable dividend per share. This suggests a balance between reinvesting in the business and returning value to shareholders. The weighted average calculation ensures that recent financial performance is accurately reflected.

Profitability Ratio Summary

Profitability Score : 9.40

The profitability ratios indicate strong performance, supported by healthy gross profit and operating margins. Return on capital employed and return on equity are also positive, reflecting efficient use of capital and equity. While return on assets is moderate, the overall profitability picture is favorable. The weighted average calculation ensures that recent profitability trends are accurately represented.

Efficiency Ratio Summary

Efficiency Score : 6.33

The efficiency ratios present a mixed picture of how well the company utilizes its assets. While inventory management is strong, fixed asset and capital turnover need improvement. Efficient inventory turnover suggests effective management of stock, but lower asset turnover ratios indicate potential underutilization of fixed assets and capital. The weighted average calculation provides a balanced view of the company's efficiency trends.

Coverage Ratio Summary

Coverage Score : 5.20

The coverage ratios present a mixed view. The absence of interest coverage is due to the lack of debt, which is a positive. The equity dividend coverage suggests a strong ability to cover dividends with equity. This indicates a financially stable approach to dividend payouts. The weighted average calculation ensures that recent dividend coverage performance influences the overall assessment.

Solvency Ratio Summary

Solvency Score : 10.00

The solvency ratios reflect a very strong financial position, characterized by the absence of debt. This indicates a low risk of financial distress and a high level of financial stability. The company's operations are primarily funded by equity, enhancing its resilience. The weighted average calculation ensures that recent data impacts the assessment of solvency.

Liquidity Ratio Summary

Liquidity Score : 3.36

The liquidity position indicates challenges in meeting short-term obligations. While the quick ratio shows some ability to cover immediate liabilities, the low current and cash ratios suggest potential difficulties. The operating cash flow ratio further underscores these concerns. Addressing these liquidity issues is crucial for maintaining smooth operations and financial health. It is calculated using a weighted average of the last five years, with the most recent year weighted most heavily.