Shilpa Medicare Ltd

Growth Ratio Summary

Growth Score : 6.00

The growth ratios show a mixed performance. While revenue and operating profit growth rates are strong, earnings per share (EPS) and net income growth rates are negative. This suggests that the company is growing its top line but struggling to convert it into bottom-line profits. The company has been doing well in terms of revenue and operating profit, but not in terms of earnings.

Financial Ratio Summary

Financial Score : 5.20

The financial ratios present a mixed picture. Adjusted and cash earnings per share are at an average level, while the book value per share is strong. However, dividend per share and capital expenditures are low. This suggests that the company has a strong asset base but is not effectively utilizing its capital.

Profitability Ratio Summary

Profitability Score : 9.80

The profitability ratios indicate strong performance. Gross profit, return on capital employed, return on equity, return on assets, operating margin, and net margin are all positive. This shows that the company is very profitable.

Efficiency Ratio Summary

Efficiency Score : 2.67

The efficiency ratios suggest areas of concern. The fixed asset turnover ratio is low, implying inefficient use of fixed assets. The inventory and receivables turnover ratios are also relatively low. The days sales in inventory and receivable days are high, indicating challenges in managing inventory and collecting receivables. This suggests the company needs to improve its operational processes to enhance efficiency.

Coverage Ratio Summary

Coverage Score : 7.60

The coverage ratios indicate the company's ability to meet its interest and dividend obligations. While the interest coverage ratio is moderate, the equity dividend coverage ratio is high, showing a strong capacity to cover dividend payments with available equity. This suggests that, the company has the potential to cover the dividend payments.

Solvency Ratio Summary

Solvency Score : 10.00

The solvency ratios point to a strong financial position. The debt and debt-to-equity ratios are low, indicating a conservative capital structure. The equity ratio is high, reflecting a solid financial base. Similarly, the debt-to-asset ratio is low, showing that the company has a small proportion of its assets financed by debt. This suggests that the company has been financially stable.

Liquidity Ratio Summary

Liquidity Score : 4.26

The company's liquidity position shows both strengths and weaknesses. While the quick ratio indicates an ability to meet short-term obligations, the current ratio suggests there might be challenges in managing current assets and liabilities. The cash ratio is low, meaning the company may face difficulty in instantly paying off its current liabilities. The operating cash flow ratio is also low, reflecting limited cash generation from operations. The weighted average calculation method was used to assess these ratios.