Mangalam Drugs and Organics Ltd

Growth Ratio Summary

Growth Score : 4.00

The company's growth performance is mixed, showing strength in operating profit and asset growth. However, it has experienced declines in revenue, EPS, and net income growth. While operating profitability and asset expansion are positive signs, the negative trends in revenue and earnings raise concerns about the company's overall growth trajectory. Addressing these factors will be crucial for sustainable long-term growth.

Financial Ratio Summary

Financial Score : 2.40

The company's financial ratios present a mixed picture. Adjusted EPS, cash EPS, book value per share, dividend per share and capital expenditures are below the expected ranges. The ratios indicate potential areas of concern regarding earnings quality, shareholder value, and investment in future growth. Addressing these issues could improve investor confidence and overall financial health.

Profitability Ratio Summary

Profitability Score : 9.60

The company demonstrates good profitability, with robust gross profit margin, ROCE, ROE, ROA, operating margin, and net margin. The company is generating profits from its capital employed, equity, and assets. Strong profitability indicates efficient operations and effective cost management. This positions the company favorably within its industry.

Efficiency Ratio Summary

Efficiency Score : 4.33

The company's efficiency in managing its assets presents a mixed picture. It shows strength in receivables turnover. However, fixed asset turnover, inventory turnover, days sales in inventory, and capital turnover are areas needing improvement. While efficient in collecting receivables, the company struggles with asset utilization and inventory management. Improving these areas could significantly enhance operational performance and profitability.

Coverage Ratio Summary

Coverage Score : 2.00

The company's coverage ratios are weak, particularly concerning interest coverage and equity dividend coverage. The company's ability to cover its interest expenses is limited. With low coverage ratios, the company may face increased financial risk and reduced flexibility in managing its debt and dividend obligations.

Solvency Ratio Summary

Solvency Score : 9.50

The company exhibits good solvency, demonstrating a strong capacity to meet its long-term obligations. Low debt and high equity levels suggest a stable financial structure. The debt-to-asset ratio further supports this, indicating a conservative approach to leveraging assets. This financial stability provides a solid foundation for future growth and resilience against economic downturns.

Liquidity Ratio Summary

Liquidity Score : 2.40

The company's liquidity position is weak, indicating potential difficulties in meeting short-term obligations. The current, quick, and cash ratios are all at concerning levels. The operating cash flow ratio offers a slight positive outlook, suggesting some ability to generate cash from operations. However, the overall low liquidity scores signal a need for improved working capital management to ensure the company can comfortably cover its immediate liabilities.