Sharda Motor Industries Ltd

Growth Ratio Summary

Growth Score : 10.00

The company demonstrates strong growth across various metrics. The revenue growth rate indicates solid expansion in sales. The operating profit growth rate suggests improving profitability from core operations. The earnings per share (EPS) growth indicates increasing profitability for shareholders. The asset growth rate reflects expansion in the company's asset base. The net income growth rate suggests increasing profitability for the company overall. This consistent growth across multiple areas indicates positive business momentum.

Financial Ratio Summary

Financial Score : 8.40

The company showcases strong financial performance. The adjusted earnings per share (EPS) and cash earnings per share (Cash EPS) are high, reflecting increasing profitability. The book value per share is solid, indicating a strong equity base. The dividend per share (DPS) is also good, suggesting the company is rewarding its shareholders. However, the capital expenditures (CapEx) are relatively low, which may indicate underinvestment in long-term growth. The company consistently delivers high adjusted and cash earnings per share, and maintains a solid book value per share.

Profitability Ratio Summary

Profitability Score : 10.00

The company exhibits strong profitability. The gross profit margin indicates a healthy profit from sales after deducting the cost of goods sold. The return on capital employed (ROCE), return on equity (ROE), and return on assets (ROA) are high, reflecting efficient utilization of capital, equity, and assets to generate profits. The operating margin and net margin are also good, suggesting effective cost management and strong profitability from core operations. These high profitability ratios indicate the company is generating strong returns for its investors and shareholders.

Efficiency Ratio Summary

Efficiency Score : 8.33

The company demonstrates strong efficiency in its operations. The fixed asset turnover ratio indicates effective utilization of fixed assets to generate revenue. The inventory turnover ratio suggests efficient inventory management. The receivables turnover ratio indicates efficient collection of receivables. However, the capital turnover ratio indicates relatively less efficient utilization of capital to generate revenue. The company's shorter days sales in inventory and receivable days reflect efficient working capital management.

Coverage Ratio Summary

Coverage Score : 10.00

The company exhibits strong coverage ratios. The interest coverage ratio is very high, indicating a significant ability to meet interest expenses from its earnings. The equity dividend coverage ratio is also high, suggesting the company can comfortably cover dividends to equity shareholders. These strong coverage ratios indicate the company is financially stable and well-positioned to meet its obligations.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency. The debt and debt-to-equity ratios are very low, indicating minimal reliance on debt financing, which reduces financial risk. The equity ratio is high, reflecting a strong equity base. The debt-to-asset ratio is also low, indicating a small proportion of assets are financed by debt. This conservative approach to financial leverage positions the company well to withstand economic uncertainties.

Liquidity Ratio Summary

Liquidity Score : 5.78

The company's liquidity is a mix of strengths and weaknesses. While the quick ratio indicates a good ability to meet short-term obligations with its most liquid assets, the current ratio suggests some challenges in covering current liabilities with current assets. The cash ratio indicates a moderate ability to cover short-term liabilities with cash and equivalents. The operating cash flow ratio indicates a potential strain on short-term liquidity, as operating cash flows may not sufficiently cover current liabilities. This mixed performance in liquidity metrics warrants attention to ensure the company can comfortably meet its short-term obligations.