Growth Ratio Summary

Growth Score : 2.00

The growth ratios paint a concerning picture for Puravankara Ltd. The Revenue Growth Rate, Operating Profit Growth Rate, Earnings Per Share (EPS) Growth, Asset Growth Rate, and Net Income Growth Rate are all negative, suggesting the company is facing significant challenges in expanding its business and maintaining profitability. Addressing these negative trends is vital for the company's long-term sustainability and success.

Financial Ratio Summary

Financial Score : 3.20

The financial ratios provide a mixed view of the company's financial health. The Adjusted Earnings Per Share (Adjusted EPS) and Cash Earnings Per Share (Cash EPS) are low, indicating limited profitability on a per-share basis. The Book Value Per Share is also low, suggesting a constrained equity base. However, the Dividend Per Share (DPS) is positive, indicating returns to shareholders. The Capital Expenditures (CapEx) show investments in long-term assets. Balancing investments and returns is crucial for long-term value creation.

Profitability Ratio Summary

Profitability Score : 9.20

The profitability ratios indicate strong performance. High Gross Profit Margin suggests efficient production and cost management. A good Return on Capital Employed (ROCE) indicates effective use of capital to generate profits. The Return on Equity (ROE) shows the return generated for shareholders. Solid Operating and Net Margins further confirm the company's ability to generate profits from its operations. Maintaining these profitability levels is vital for long-term success.

Efficiency Ratio Summary

Efficiency Score : 3.33

The company's efficiency ratios present a mixed picture. The Fixed Asset Turnover Ratio indicates how well the company generates revenue from its fixed assets. However, the Inventory Turnover Ratio and Receivable Turnover Ratio are low, suggesting slow-moving inventory and inefficient collection of receivables. The high Days Sales in Inventory and moderate Receivable Days further confirm these inefficiencies. Improving these ratios is crucial for enhancing overall operational performance. Real estate companies must efficiently manage their assets to maximize returns.

Coverage Ratio Summary

Coverage Score : 2.00

The coverage ratios suggest that the company is struggling to meet its interest and dividend obligations. Both the Interest Coverage Ratio and Equity Dividend Coverage Ratio are low, indicating potential difficulties in servicing debt and providing returns to shareholders. Improving profitability and cash flow is essential for enhancing coverage ratios and ensuring financial stability. Real estate companies need to maintain healthy coverage ratios to attract investors and lenders.

Solvency Ratio Summary

Solvency Score : 9.00

The solvency position of Puravankara Ltd. appears robust. The low debt ratio and debt-to-equity ratio suggest a conservative approach to leverage. The equity ratio indicates a solid capital base, which can provide stability. The debt-to-asset ratio further confirms that a small portion of assets is financed through debt. The real estate sector can be highly leveraged, so maintaining a balanced capital structure is a positive sign.

Liquidity Ratio Summary

Liquidity Score : 2.40

The company's liquidity position shows difficulties in meeting its short-term obligations. While the current ratio reflects the ability to cover liabilities with current assets, it stands at a low score. The quick and cash ratios further highlight the challenges in converting assets into cash quickly. The operating cash flow ratio provides some buffer, but overall, the company needs to improve its short-term financial health. Given the long project cycles typical in real estate, managing liquidity is vital for smooth operations.