Rajshree Polypack Ltd

Growth Ratio Summary

Growth Score : 4.00

The growth ratios present a mixed picture of the company's performance. The company has shown good growth in operating profit and assets. However, revenue growth, earnings per share growth, and net income growth are low. This indicates that while the company is becoming more efficient and investing in assets, it is struggling to grow its top line and bottom line. The company needs to focus on improving its sales and profitability to achieve sustainable growth.

Financial Ratio Summary

Financial Score : 4.00

The company's financial ratios present a mixed picture. Cash earnings per share are positive, but adjusted earnings per share, book value per share and dividend per share are low. The company manages capital expenditures well. The company needs to focus on improving its earnings and book value to enhance its financial performance.

Profitability Ratio Summary

Profitability Score : 4.80

The company's profitability ratios demonstrate a mixed performance. While return on capital employed and return on assets are strong, gross profit margin, return on equity, operating margin, and net margin are low. This suggests the company is effective at generating returns on its investments, but struggles in its core operations. There is room to improve operational efficiency and cost management to enhance overall profitability.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency ratios present a mixed picture. While days sales in inventory and receivable days are well-managed, the turnover ratios for fixed assets, inventory, receivables, and capital are low. This indicates the company may not be utilizing its assets effectively to generate revenue. Room for improvement exists in asset utilization to enhance overall efficiency.

Coverage Ratio Summary

Coverage Score : 4.40

The company's coverage ratios indicate mixed ability to meet its interest and dividend obligations. While interest coverage is adequate, the absence of equity dividend coverage is a concern for investors seeking dividend income. It is important for the company to strike a balance between reinvesting earnings and providing returns to shareholders.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, indicating a stable long-term financial structure. A manageable level of debt relative to equity and assets reflects a balanced capital structure. This indicates the company is well-positioned to meet its long-term obligations and has a solid foundation for future growth. However, it is important to maintain this balance and avoid excessive borrowing.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak, indicating potential difficulties in meeting its short-term obligations. The low current, quick, and cash ratios suggest that the company does not have enough liquid assets to cover its current liabilities. While a low operating cash flow ratio also points to challenges in generating cash from operations, the company needs to improve its working capital management to enhance its ability to meet short-term obligations.