N R Agarwal Industries Ltd

Growth Ratio Summary

Growth Score : 4.80

The company's growth shows a mixed performance. Revenue and asset growth are positive, but operating profit and EPS growth are negative. This suggests that the company is expanding its operations, but profitability is declining. It is calculated using weighted average method. For agriculture businesses, stable revenue and asset growth are crucial. The company should focus on improving profitability to ensure sustainable growth.

Financial Ratio Summary

Financial Score : 4.60

The company's financial metrics present a mixed picture. Cash earnings are weak. The company's reliance on cash flow may be a sign of operating efficiency. The adjusted EPS is minimal, and book value per share are not very high. The company has dividend payments, but has no capital expenditure. Overall, the company's financial health is modest. It is calculated using weighted average method.

Profitability Ratio Summary

Profitability Score : 7.00

The company's profitability metrics present a mixed performance. Gross profit and operating margins are good, but return on equity and net margin are minimal. This suggests that while the company can generate profits from its sales, its overall profitability and efficiency in utilizing equity are weak. It is calculated using weighted average method. For the agriculture industry, the company's profitability is good.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency in utilizing its assets is mixed. The company is not efficiently utilizing its assets. On the positive side, days sales in inventory and receivable days are high, indicating a quick conversion of inventory and receivables into cash. On the negative side, the company has poor fixed assets turnover and capital turnover. It is calculated using weighted average method. Efficiency is particularly key in the agriculture sector due to the need to optimize yields and manage costs.

Coverage Ratio Summary

Coverage Score : 6.80

The company's coverage ratios are mixed. The interest coverage ratio is good, indicating a strong ability to meet interest obligations. However, the equity dividend coverage ratio is low. It is calculated using weighted average method. The company's ability to cover its financial obligations is reasonable.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, indicating a solid long-term financial stability. This suggests that the company is well-capitalized and has a low risk of financial distress. On the positive side, the company has a strong equity position. It is calculated using weighted average method. The agriculture industry generally benefits from stable demand, making solvency crucial for weathering economic cycles.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak, as indicated by the poor score. This suggests potential difficulties in meeting short-term obligations. On the positive side, this could mean the company is aggressively investing its cash. On the negative side, it could signal an inability to manage working capital effectively, which may lead to cash flow problems and impact day-to-day operations. For the Agriculture industry, maintaining adequate liquidity is crucial due to the seasonal nature of the business and potential delays in payments.