Shree Digvijay Cement Co. Ltd

Growth Ratio Summary

Growth Score : 4.80

The company's growth metrics present a mixed picture. While revenue and asset growth show positive trends, operating profit, EPS, and net income growth rates are concerning. This indicates potential challenges in converting revenue into profit and managing earnings effectively. Strategic initiatives to improve profitability and earnings are essential for sustained growth.

Financial Ratio Summary

Financial Score : 3.20

The company's financial ratios indicate areas of concern. Adjusted EPS, cash EPS, and book value per share are low, while dividend per share is at an adequate level. High capital expenditures may be straining overall financial performance. Addressing these factors is crucial for improving investor confidence and financial health.

Profitability Ratio Summary

Profitability Score : 10.00

The company exhibits strong profitability, with excellent gross profit margin, ROCE, ROE, ROA, operating margin, and net margin. This suggests efficient operations and effective cost management, leading to high returns on investments and assets. Maintaining these high profitability levels is crucial for sustaining long-term financial health and competitive advantage.

Efficiency Ratio Summary

Efficiency Score : 6.00

The company shows mixed efficiency. While receivables turnover and receivable days are strengths, the fixed asset and capital turnover ratios need improvement. Efficiently managing assets and inventory is essential in the construction and engineering sector to maximize profitability. The company excels in managing receivables but must address inefficiencies in asset and capital turnover to optimize overall performance.

Coverage Ratio Summary

Coverage Score : 6.80

The company's coverage ratios present a mixed view. While the interest coverage ratio is strong, the equity dividend coverage ratio is low. This suggests the company can comfortably meet its interest obligations but may face challenges in covering dividend payments with available equity. Balancing these coverage aspects is essential for maintaining investor confidence and financial stability.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits strong solvency, indicating a very low risk of financial distress. The debt and debt-to-equity ratios are low, while the equity and debt-to-asset ratios reflect a solid capital structure. This suggests the company relies more on equity than debt to finance its assets. The company's strong solvency provides a stable base for future growth and resilience against economic downturns.

Liquidity Ratio Summary

Liquidity Score : 6.68

The company's ability to meet its short-term obligations appears adequate. Current and quick ratios suggest a satisfactory level of liquid assets, while cash and operating cash flow ratios indicate moderate cash reserves. Maintaining a healthy balance between liquid assets and operational efficiency is crucial for sustaining liquidity in the construction and engineering industry, which often involves long project cycles and fluctuating cash flows. This suggests the company can generally cover its immediate liabilities, but there might be room to optimize cash management for better flexibility.