Naga Dhunseri Group Ltd

Growth Ratio Summary

Growth Score : 6.00

The company has demonstrated strong growth in revenue, operating profit, and assets, indicating successful expansion and market penetration. However, the negative growth in earnings per share (EPS) and net income growth suggests profitability has not kept pace with revenue growth, which could be a concern for future sustainability. Despite the high revenue growth, the decline in earnings needs attention to ensure long-term financial health. This may reflect increased costs or investments that will yield future benefits.

Financial Ratio Summary

Financial Score : 8.00

The company showcases strong financial metrics with high adjusted and cash earnings per share, indicating solid profitability on a per-share basis. The increasing book value per share reflects growing equity and intrinsic value. While the dividend per share is low, the capital expenditures show investments in future growth. Despite the low dividend, the strong earnings and investments signal a healthy financial position. However, providing higher dividends might attract more investors.

Profitability Ratio Summary

Profitability Score : 9.20

The profitability ratios demonstrate high efficiency in generating profits from revenue and capital. The high gross and net profit margins indicate effective cost management and pricing strategies. Strong returns on capital employed, equity, and assets further reinforce the company's ability to generate profits. However, the low return on assets compared to other ratios suggests there is room for improvement in asset utilization. Overall, the company's profitability is a significant strength.

Efficiency Ratio Summary

Efficiency Score : 2.67

The company's efficiency ratios suggest it may not be optimally utilizing its assets to generate revenue. Fixed asset and capital turnover ratios are low, indicating potential underutilization of fixed assets and capital. While the receivables turnover ratio is moderate, the high number of days sales in inventory and receivable days suggest challenges in inventory and receivables management. This impacts the company's ability to convert assets into sales quickly. However, this could also be the result of strategic decisions to hold inventory or extend credit terms.

Coverage Ratio Summary

Coverage Score : 10.00

The coverage ratios indicate a strong ability to meet interest and dividend obligations, showcasing financial stability. The high-interest coverage ratio suggests that the company can comfortably pay its interest expenses from its earnings. The high equity dividend coverage ratio further reinforces the company's financial health. This provides a sense of security for investors and lenders.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, indicating a solid financial structure and a low risk of financial distress. The debt and debt-to-equity ratios are very low, suggesting minimal reliance on debt financing. The equity and debt to asset ratios further reinforce the company's ability to meet its long-term obligations. This conservative approach to financing provides a stable base for future growth. However, it might also indicate missed opportunities to leverage debt for higher returns.

Liquidity Ratio Summary

Liquidity Score : 3.50

The company's liquidity position indicates potential challenges in meeting its short-term obligations. While the current and quick ratios are below industry benchmarks, the operating cash flow ratio suggests some capacity to cover current liabilities with operating cash flow. The company may face difficulties in quickly converting assets to cash to cover immediate liabilities. On the other hand, holding a lot of liquid assets might impact the company's profitability.