Growth Ratio Summary

Growth Score : 6.00

The company's growth ratios present a mixed picture. While earnings per share and net income growth rates are positive, revenue and asset growth rates are negative. This suggests the company may be improving profitability and efficiency but struggling with top-line growth. Sustainable growth will depend on addressing the factors impacting revenue and asset expansion while maintaining profitability.

Financial Ratio Summary

Financial Score : 2.40

The company's financial ratios indicate challenges in key areas such as earnings per share and book value per share. Negative adjusted and cash EPS suggest the company is not generating sufficient profits for each share. Low capital expenditure may limit future growth. Improving profitability and managing capital investments are crucial for enhancing financial performance.

Profitability Ratio Summary

Profitability Score : 2.00

Indiabulls Enterprises Ltd faces significant challenges in profitability, as reflected in its profitability ratios. Negative margins and returns on capital, equity, and assets indicate the company is struggling to generate profits from its operations and investments. Turning around profitability requires a comprehensive review of cost structures, revenue streams, and asset utilization.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company demonstrates mixed efficiency. While the inventory turnover and days sales in inventory ratios are strong, indicating efficient inventory management, the fixed asset, receivables, and capital turnover ratios are weak. This suggests challenges in optimizing asset utilization and managing receivables. Enhancing asset turnover and shortening receivable days could improve overall efficiency and profitability.

Coverage Ratio Summary

Coverage Score : 2.00

The coverage ratios show a weak ability to cover interest expenses and equity dividends. A low-interest coverage ratio suggests the company may struggle to meet its interest obligations, while a low equity dividend coverage ratio indicates limited capacity to provide dividends to shareholders. Improving earnings and managing debt levels are essential to strengthen coverage ratios.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits a strong solvency position, with debt and equity ratios indicating a well-balanced capital structure. The company's reliance on borrowing is low, and most of the assets are funded through equity. This financial stability provides a cushion against economic downturns and supports long-term sustainability. A strong equity base enhances investor confidence and provides flexibility for future growth initiatives.

Liquidity Ratio Summary

Liquidity Score : 6.52

The company's liquidity position reveals a mixed outlook. While the quick ratio indicates a favorable ability to meet short-term obligations with its most liquid assets, the poor cash ratio suggests a reliance on less liquid assets to cover immediate liabilities. The current and operating cash flow ratios are at market average, reflecting an adequate management of working capital. This suggests the company might face challenges in quickly converting assets to cash, especially during stressed conditions, but the quick ratio shows less reliance on inventory.