Kridhan Infra Ltd

Growth Ratio Summary

Growth Score : 8.00

The company demonstrates strong growth in key areas, particularly in revenue, earnings per share, and net income. However, this positive momentum is offset by negative asset growth and operating profit growth rates. This mixed growth performance suggests that while the company is expanding its top and bottom lines, it faces challenges in asset utilization and operational efficiency. Sustaining high growth rates will depend on addressing these underlying issues.

Financial Ratio Summary

Financial Score : 3.60

The company's financial ratios reveal significant challenges. Adjusted EPS and cash EPS are negative, and the book value per share is also low, indicating underlying financial strain. The company does not distribute dividends. However, it has managed its capital expenditures well. This mixed picture suggests that while cost management is strong, profitability and shareholder value are areas of concern.

Profitability Ratio Summary

Profitability Score : 4.60

The company's profitability ratios present a highly varied picture. While gross and operating profit margins are strong, indicating efficient core operations, return on capital employed, return on equity, and net margin are low, reflecting poor overall profitability. This mixed performance suggests that while the company can generate profits at the operational level, these profits are not translating into overall financial returns. Improving these returns is essential for sustainable profitability.

Efficiency Ratio Summary

Efficiency Score : 4.00

The company's efficiency in utilizing its assets is varied. While inventory management appears strong, as indicated by the days sales in inventory, fixed asset and capital turnover are poor, suggesting underutilization. Receivables turnover is also low, leading to extended receivable days. This mixed performance indicates potential inefficiencies in certain operational areas, offset by strengths in inventory control. Improving asset utilization could enhance overall efficiency.

Coverage Ratio Summary

Coverage Score : 6.80

The company's coverage ratios present a mixed view. The interest coverage ratio is strong, indicating a good ability to meet interest obligations. However, the equity dividend coverage ratio is low, suggesting that the company isn't covering its potential dividend payouts adequately. This disparity suggests strength in managing debt-related obligations, but weakness in supporting equity-related payouts, potentially affecting shareholder returns.

Solvency Ratio Summary

Solvency Score : 10.00

Kridhan Infra Ltd exhibits excellent solvency, indicating a very strong long-term financial stability. With no debt relative to equity or assets, the company's financial structure is highly conservative. Maintaining this debt-free status supports long-term sustainability, but it may also indicate missed opportunities for leveraging debt to fuel growth. The high equity ratio further solidifies the company's robust financial position.

Liquidity Ratio Summary

Liquidity Score : 2.40

The company's liquidity position reflects challenges in meeting its short-term obligations. While current and quick ratios are quite low, indicating potential difficulties in converting current assets into cash, the slightly better operating cash flow ratio offers a small positive signal. This mixed performance suggests that while the company struggles with immediate cash availability, its operational cash flows provide some support. Addressing these liquidity concerns is vital for maintaining financial stability.