Kataria Industries Ltd

Growth Ratio Summary

Growth Score : 4.80

The company's growth metrics present a mixed view. While asset and net income growth rates are strong, revenue, operating profit, and EPS growth show negative trends. This suggests that while the company is expanding its asset base and net income, it struggles to increase revenue and profitability. The company needs to focus on improving revenue and operating profit growth to ensure sustainable growth. The company needs to focus on improving revenue and operating profit growth.

Financial Ratio Summary

Financial Score : 4.00

The financial ratios reveal mixed performance. While capital expenditures are well managed, adjusted EPS, cash EPS, and book value per share are low, indicating potential issues with profitability and shareholder value. Dividend per share is zero, suggesting no dividend payouts. The company needs to improve its profitability and shareholder value. The company needs to improve its profitability.

Profitability Ratio Summary

Profitability Score : 6.40

The company's profitability ratios present a polarized picture. While return on capital employed, return on equity and return on assets are strong, gross profit margin, operating margin and net margin are very low. This suggests that while the company is efficient in generating returns on its capital and assets, it is struggling with its margins. The company needs to improve its margins.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency metrics present a mixed picture. While days sales in inventory and receivable days are well-managed, the turnover ratios for fixed assets, inventory, receivables, and capital are very low. This suggests potential inefficiencies in asset utilization and working capital management. Improving turnover ratios would enhance operational effectiveness and profitability. The company needs to improve its asset utilization.

Coverage Ratio Summary

Coverage Score : 5.60

The company's coverage ratios indicate adequate ability to meet its interest obligations. The interest coverage ratio is solid, but the equity dividend coverage ratio is low, reflecting the company's dividend policy. The company's ability to meet its interest obligations is adequate. The company is managing its interest obligations well.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is excellent, characterized by a strong equity base and minimal debt. This indicates a solid financial structure and a lower risk of financial distress. The favorable solvency metrics provide a buffer against economic downturns and support the company's long-term stability. The company's solvency position shows that it is financially stable.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position appears concerning. The weighted average calculation, which emphasizes recent performance, reveals extremely low current, quick, and cash ratios. While liquidity is essential for meeting short-term obligations, the inability to convert assets into cash quickly can create financial strain. The company needs to improve its short-term asset management to ensure operational stability. The company's liquidity position might affect its ability to meet immediate obligations.