Shah Metacorp Ltd

Growth Ratio Summary

Growth Score : 8.00

The company exhibits robust growth, particularly in revenue, operating profit, and earnings per share. This suggests the company is expanding its market presence and improving profitability. While asset growth is also strong, the lack of net income growth indicates the company should focus on translating revenue gains into bottom-line improvements to ensure sustainable financial health.

Financial Ratio Summary

Financial Score : 4.00

The company's financial ratios present a mixed performance. Capital expenditures appear to be managed effectively, while adjusted EPS, book value per share, and dividend per share are low, indicating potential areas for improvement in shareholder value. The cash earnings per share is also weak, reflecting challenges in generating sufficient cash from operations.

Profitability Ratio Summary

Profitability Score : 2.00

The company's profitability ratios are generally weak. Negative gross profit and operating margins indicate challenges in cost management and pricing strategies. Similarly, low returns on capital employed, equity, and assets suggest inefficient use of resources. The company should focus on improving its cost structure, pricing strategies, and asset utilization 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 management appear strong, fixed asset, inventory, receivables, and capital turnover ratios are poor, indicating that the company is not effectively utilizing its assets to generate revenue. This suggests room for improvement in operational strategies to enhance asset utilization and overall efficiency.

Coverage Ratio Summary

Coverage Score : 2.00

The company has a low coverage ratio, primarily driven by a negative interest coverage ratio. This suggests potential difficulties in meeting its interest obligations, which could impact its financial stability. While the equity dividend coverage ratio is also low, the absence of dividend payments mitigates this concern. However, improving the interest coverage ratio is crucial for maintaining financial health.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits a strong solvency position, suggesting a solid foundation in managing its long-term debt obligations. This indicates that assets sufficiently cover liabilities, providing a buffer against financial distress. This robust solvency offers stability and may attract investors.

Liquidity Ratio Summary

Liquidity Score : 2.00

The company's liquidity position is weak, indicating potential difficulties in meeting short-term obligations. All the metrics show poor performance. While a low liquidity ratio might reflect efficient cash management in some sectors, it raises concerns about the company's ability to handle unexpected financial demands or economic downturns.