Growth Ratio Summary

Growth Score : 10.00

NMDC exhibits very strong growth across various key metrics. High revenue growth indicates increasing demand for its products or services. Strong operating profit growth shows the company is managing its costs effectively. The growth in earnings per share reflects increasing profitability for its shareholders. Assets and net income are also increasing at a very high rate. This indicates a strong and sustainable growth trajectory.

Financial Ratio Summary

Financial Score : 5.80

NMDC's financial metrics present a mixed picture. While adjusted earnings per share indicates reasonable profitability, the decreasing cash earnings per share and book value per share are concerning. The company's dividend policy is sustainable, providing value to its shareholders. However, high capital expenditures may strain its financial resources and should be managed efficiently. There is a need to address the capital expenditure.

Profitability Ratio Summary

Profitability Score : 10.00

NMDC exhibits excellent profitability, indicating efficient operations and strong financial performance. High gross profit margins reflect effective cost management. The company's returns on capital employed, equity, and assets are also very strong. This shows efficient use of resources. Strong operating and net margins further reinforce NMDC's ability to generate profits from its core business activities. This demonstrates the company's financial health.

Efficiency Ratio Summary

Efficiency Score : 4.33

NMDC's efficiency ratios suggest mixed performance in asset utilization. While the fixed asset turnover ratio indicates reasonable efficiency in generating revenue from fixed assets, there are some concerns with inventory and receivables management. The high number of receivable days and days sales in inventory negatively impact the company's ability to quickly convert assets into cash. Capital turnover is an area that needs improvement as it is not helping the company to generate revenue. This is because the company is not fully utilizing its assets.

Coverage Ratio Summary

Coverage Score : 8.40

NMDC demonstrates strong ability to cover its interest expenses, indicating a low risk of financial distress. However, the equity dividend coverage ratio suggests that the company's earnings provide adequate coverage for its dividend payments, but there is room for improvement here.. While the company can comfortably meet its current obligations, enhancing the coverage ratio would provide an additional layer of financial security.

Solvency Ratio Summary

Solvency Score : 10.00

NMDC exhibits excellent solvency, indicating a very low risk of financial distress. The company maintains minimal debt levels, as reflected in its debt and debt-to-equity ratios. A strong equity ratio further reinforces its financial stability. NMDC's conservative approach to leverage enhances its resilience to economic downturns and provides a solid foundation for sustainable growth. It reflects the company's ability to meet its long-term obligations.

Liquidity Ratio Summary

Liquidity Score : 8.80

NMDC demonstrates strong ability to meet its short-term obligations. High current and quick ratios indicate a comfortable cushion to cover immediate liabilities. The company's cash ratio further supports its liquidity position. However, the operating cash flow ratio suggests potential challenges in generating cash from its operations, which could impact its financial flexibility. It reflects good short term financial health but the generation of cash should be looked into.