Sarveshwar Foods Ltd

Growth Ratio Summary

Growth Score : 10.00

Sarveshwar Foods demonstrates very strong growth across all key metrics. High revenue growth, operating profit growth, EPS growth, asset growth, and net income growth indicate a robust expansion and effective management strategies. The company is experiencing substantial gains in its financials, positioning it favorably for future success and market leadership. The company exhibits strong growth in revenue, profit and assets, which is a very positive sign for the investors as well as for the company, which will help it to expand further.

Financial Ratio Summary

Financial Score : 4.00

The financial ratios present a mixed picture. While Capital Expenditures are well-managed, Adjusted EPS, Cash EPS, and Book Value Per Share are below average, indicating challenges in profitability and asset value. The company does not distribute dividends, which can impact investor sentiment. The company needs to focus on improving its earning per share and book value per share.

Profitability Ratio Summary

Profitability Score : 9.60

The company's profitability ratios reflect very strong performance. High gross profit margin, ROCE, ROE, ROA, operating margin, and net margin indicate effective cost management and efficient operations. This showcases the company's ability to generate profits from its sales and investments, creating value for its stakeholders. Therefore, the company is able to generate profits from its sales and investments.

Efficiency Ratio Summary

Efficiency Score : 4.00

The efficiency ratios reveal mixed performance. While the Fixed Asset Turnover Ratio is excellent, the Inventory Turnover Ratio, Receivable Turnover Ratio, Days Sales in Inventory, Receivable Days, and Capital Turnover Ratio are not very efficient. This suggests that while the company is effectively utilizing its fixed assets, it struggles with inventory management, collections, and overall capital utilization. This indicates a need for improvements in working capital management to enhance operational efficiency. Therefore, the company needs to focus on improving its operational efficiency.

Coverage Ratio Summary

Coverage Score : 4.40

The company's coverage ratios show mixed signals. While the Interest Coverage Ratio is at an adequate level, the Equity Dividend Coverage Ratio is low, indicating that the company is not distributing dividends. Therefore, the company needs to improve its coverage ratio.

Solvency Ratio Summary

Solvency Score : 10.00

Sarveshwar Foods exhibits a very strong solvency position. Lower debt ratios and a higher equity ratio indicates a strong financial position and less reliance on debt. The company's financial structure poses a lower risk to investors and creditors, providing a stable base for future growth. This suggests a financially secure and stable operation.

Liquidity Ratio Summary

Liquidity Score : 4.76

The company's liquidity position indicates some challenges in meeting its short-term obligations. While the Current and Quick Ratios are at an acceptable level, the extremely low Cash Ratio suggests a reliance on current assets other than cash to cover immediate liabilities. The slightly below-average Operating Cash Flow Ratio further emphasizes potential difficulties in generating cash from operations. This necessitates careful monitoring of working capital to ensure smooth operational flow. However, the current ratio is maintaining the company's short-term obligations.