Sun Pharma Advanced Research Company Ltd

Growth Ratio Summary

Growth Score : 7.20

The company exhibits mixed growth signals. While operating profit and EPS growth are positive, revenue and asset growth have declined. This suggests that while the company is improving its profitability, it struggles to expand its revenue base and asset portfolio. Continued focus on innovation and market expansion is crucial for sustained growth.

Financial Ratio Summary

Financial Score : 2.00

The company's financial metrics are generally weak. Negative adjusted and cash EPS indicate unprofitability. A negative book value per share is a significant concern, reflecting potential erosion of shareholder equity. Zero dividend per share also suggests that the company is not returning value to shareholders. These factors highlight the need for improved financial performance.

Profitability Ratio Summary

Profitability Score : 2.00

The company's profitability ratios are significantly negative across all metrics, including gross profit margin, ROCE, ROE, ROA, operating margin, and net margin. This indicates severe challenges in generating profit from its operations and efficiently utilizing its capital and assets. Addressing these issues is crucial for improving financial health and sustainability.

Efficiency Ratio Summary

Efficiency Score : 4.00

The company's efficiency metrics present a mixed picture. The fixed asset and capital turnover ratios are low, indicating inefficient use of assets. The receivables turnover is moderate, but the receivable days suggest some delays in collecting payments. Zero days sales in inventory suggest efficient inventory management. These factors collectively impact the company's operational efficiency.

Coverage Ratio Summary

Coverage Score : 2.00

The company's coverage ratios are weak, with a negative interest coverage ratio and zero equity dividend coverage. This indicates difficulties in meeting interest obligations and returning value to shareholders through dividends. Addressing these issues is vital for improving investor confidence and financial stability.

Solvency Ratio Summary

Solvency Score : 10.00

The company's solvency position is strong, characterized by a negative debt ratio and debt-to-equity ratio, coupled with a high equity ratio. This indicates that the company relies more on equity than debt for financing. A lower debt to asset ratio also suggests strong solvency. This financial structure provides a stable foundation for long-term sustainability and growth.

Liquidity Ratio Summary

Liquidity Score : 3.10

The company's liquidity position is concerning. While a slightly positive quick ratio offers a small cushion, low current and cash ratios suggest potential difficulties in meeting short-term obligations. Negative operating cash flow further strains liquidity. The industry demands readily available cash for operations and research, making these low ratios a significant challenge.