Kaushalya Infrastructure Development Corpn Ltd

Growth Ratio Summary

Growth Score : 8.80

The company demonstrates strong growth, particularly in revenue, EPS, asset, and net income growth rates. This indicates successful expansion and market penetration. However, the negative operating profit growth rate suggests potential challenges in maintaining profitability alongside revenue increases. Sustaining high growth rates will depend on addressing operational inefficiencies and leveraging market opportunities effectively.

Financial Ratio Summary

Financial Score : 4.00

The company's financial ratios present a mixed outlook. Adjusted EPS and Book Value Per Share are low, suggesting potential areas for improvement in earnings and asset management. However, the company demonstrates effective capital expenditure strategies. Enhancing earnings per share and book value could improve overall financial performance and investor confidence.

Profitability Ratio Summary

Profitability Score : 6.80

The company's profitability metrics show a mixed performance. ROCE and Net Margin are strong, indicating efficient capital use and high-profit generation. However, negative Gross and Operating Margins are significant concerns, suggesting challenges in controlling costs and operational efficiency. Improving gross and operating margins is crucial for sustainable profitability and financial health.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency metrics present a mixed picture. Turnover ratios for fixed assets, inventory, and receivables are very low, indicating inefficient asset utilization. However, days sales in inventory and receivable days are high, suggesting effective working capital strategies. The low capital turnover ratio may indicate underutilization of invested capital. Enhancing asset management practices could improve overall efficiency and profitability.

Coverage Ratio Summary

Coverage Score : 6.80

The company shows a good capacity to cover its interest expenses, as reflected in the Interest Coverage Ratio. However, the Equity Dividend Coverage Ratio is low, indicating a limited ability to cover dividend payments with equity. This suggests a reliance on debt or retained earnings for dividend payouts. Improving equity dividend coverage would provide a more sustainable and secure financial position.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, characterized by low debt levels and a substantial equity base. The Debt Ratio and Debt to Equity Ratio are very low, indicating minimal reliance on debt financing. A high Equity Ratio further solidifies the company's financial stability. This provides a solid foundation for long-term growth and resilience against financial downturns.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is notably weak. With near-zero values for current, quick, cash, and operating cash flow ratios, there are significant concerns about its ability to meet short-term obligations. This situation creates financial risk, potentially hindering day-to-day operations and growth opportunities. Maintaining adequate liquidity is crucial for the company to ensure smooth functioning and financial stability in the hospitality and leisure industry.