Indo Rama Synthetics (India) Ltd

Growth Ratio Summary

Growth Score : 8.80

The company demonstrates strong growth, driven by high revenue growth, EPS growth, asset growth, and net income growth. This indicates a positive trajectory in expanding its business operations. The company has made significant progress in expanding its operations.

Financial Ratio Summary

Financial Score : 4.00

The company's financial ratios present a mixed picture. Capital expenditures are well-managed, but adjusted EPS, cash EPS, and book value per share are low. The absence of dividends reflects a cautious approach to shareholder returns. The company needs to improve its profitability and shareholder value.

Profitability Ratio Summary

Profitability Score : 6.60

The company demonstrates mixed profitability. Good gross profit and operating margins are offset by poor returns on equity and assets, and a negative net margin. While the company is generating profit from its core operations, the overall profitability is impacted by other factors. The company should focus on improving returns on its investments.

Efficiency Ratio Summary

Efficiency Score : 6.00

The company demonstrates mixed efficiency. The capital turnover ratio is strong, indicating effective asset utilization to generate sales. However, the other turnover ratios are low, suggesting inefficiencies in managing fixed assets, inventory, and receivables. The company excels in capital turnover but needs improvements in other operational areas.

Coverage Ratio Summary

Coverage Score : 2.00

The company shows weak coverage ratios, primarily due to a low-interest coverage ratio and equity dividend coverage ratio. This indicates potential difficulties in meeting its interest obligations. The company must improve its earnings relative to its interest expenses.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, indicating a robust equity position and minimal reliance on debt. This financial structure provides a solid foundation for long-term stability. The high equity ratio suggests that the company finances its assets primarily through equity rather than debt, reducing financial risk. This can be a significant advantage in volatile markets, offering greater resilience to economic downturns.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is a significant concern, as indicated by the low score. The company might face challenges in meeting its short-term obligations. On the upside, the textile industry can sometimes have slower liquidity cycles due to inventory and receivable management, this needs to take immediate actions to improve its cash flow and short-term asset management.