Sun Pharmaceutical Industries Ltd

Growth Ratio Summary

Growth Score : 10.00

The company exhibits strong growth across all key metrics. Revenue growth, operating profit growth, EPS growth, asset growth, and net income growth all indicate that the company is expanding its business and increasing its profitability. This robust growth performance positions the company favorably for future success and demonstrates its ability to capitalize on market opportunities. Sustaining this growth will be crucial for maintaining a competitive edge in the industry.

Financial Ratio Summary

Financial Score : 8.40

The company exhibits strong financial performance in terms of earnings per share and book value per share. Adjusted EPS and cash EPS are high, reflecting strong profitability. The book value per share also indicates a solid asset base. Dividend per share is substantial, providing returns to shareholders. However, the high capital expenditures show that the company is investing heavily in its operations, which may impact short-term cash flow but could drive future growth. Overall, the financial ratios reflect a financially sound company with good profitability and shareholder returns.

Profitability Ratio Summary

Profitability Score : 10.00

The company demonstrates strong profitability across all key metrics. High gross profit margin, return on capital employed (ROCE), return on equity (ROE), return on assets (ROA), operating margin, and net margin all indicate that the company is effectively managing its costs and generating substantial profits from its operations. This robust profitability positions the company favorably for future success and demonstrates its ability to create value for its shareholders.

Efficiency Ratio Summary

Efficiency Score : 2.67

The company's efficiency ratios indicate areas needing improvement. The fixed asset turnover ratio reflects how well the company generates revenue from its fixed assets, while the inventory and receivables turnover ratios measure the efficiency of inventory and receivables management. The days sales in inventory and receivable days ratios suggest that the company takes longer to convert inventory and receivables into sales and cash. Improving these ratios could enhance operational efficiency and reduce working capital requirements.

Coverage Ratio Summary

Coverage Score : 8.40

The company demonstrates a strong ability to cover its interest expenses with a high-interest coverage ratio. The equity dividend coverage ratio indicates the company's capacity to cover dividend payments with its equity. While the interest coverage is robust, the equity dividend coverage suggests there is room to improve the dividend payout relative to equity. Overall, the coverage ratios reflect financial stability and the ability to meet financial obligations.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits exceptional solvency, characterized by minimal debt. The debt and debt-to-equity ratios are very low, demonstrating a conservative approach to leverage. The equity ratio is near perfect, indicating that the company's assets are almost entirely financed by equity. This strong solvency position provides financial stability and reduces the risk of financial distress, allowing the company to pursue growth opportunities with less financial constraints.

Liquidity Ratio Summary

Liquidity Score : 7.86

The company's liquidity position shows a mixed performance. The quick ratio indicates a strong ability to meet short-term obligations with its most liquid assets. However, the cash ratio suggests a more moderate immediate liquidity level. While the current ratio is adequate, there is room to optimize the management of current assets and liabilities to improve financial flexibility. The operating cash flow ratio reflects the company's capacity to generate cash from its operations, which is crucial for sustaining its activities and growth.