Vaishali Pharma Ltd

Growth Ratio Summary

Growth Score : 8.80

The company demonstrates strong growth in several key areas, including revenue, EPS, asset, and net income. However, the negative operating profit growth rate raises concerns about the sustainability of this growth. The weighted average calculation, emphasizing recent performance, suggests that while the company is expanding, operational efficiency and profitability need attention to ensure balanced and sustainable growth.

Financial Ratio Summary

Financial Score : 4.00

The company's financial ratios reveal strengths in capital expenditure management but weaknesses in earnings per share and book value per share. The low adjusted and cash EPS, coupled with a low book value per share, suggest challenges in generating shareholder value. However, strong capital expenditures may indicate reinvestment in the company's future growth. The weighted average calculation, emphasizing recent data, highlights the need to improve earnings and book value to enhance overall financial performance.

Profitability Ratio Summary

Profitability Score : 9.20

The company demonstrates strong profitability, as reflected by high gross profit margin, ROCE, ROE, and operating margin. However, a low ROA suggests that the company's asset utilization could be improved. The weighted average calculation, emphasizing recent performance, underscores the company's ability to generate profits from its capital and equity, but also highlights the need to enhance asset efficiency.

Efficiency Ratio Summary

Efficiency Score : 6.00

The company's efficiency in asset utilization presents a mixed view. While fixed asset and inventory turnover are robust, indicating effective use of these assets, the low receivables and capital turnover ratios suggest challenges in managing receivables and overall capital deployment. The high receivable days further underscores the difficulty in collecting payments promptly. The weighted average calculation, emphasizing recent data, highlights the need for improvements in these specific areas to enhance overall operational efficiency.

Coverage Ratio Summary

Coverage Score : 4.40

The company's coverage ratios indicate a moderate ability to meet its interest obligations, but a lack of dividend coverage. While the interest coverage ratio is adequate, the absence of equity dividend coverage suggests that the company is not distributing dividends to shareholders. The weighted average calculation, emphasizing recent performance, underscores the need to improve both interest and dividend coverage to enhance financial stability and shareholder returns.

Solvency Ratio Summary

Solvency Score : 10.00

The company exhibits excellent solvency, reflecting a strong financial structure with low debt levels relative to equity and assets. This indicates a reduced risk of financial distress and a greater capacity to absorb financial shocks. The weighted average calculation, focusing on recent performance, highlights a consistent trend of maintaining a conservative capital structure, which is a positive indicator for long-term financial health.

Liquidity Ratio Summary

Liquidity Score : 6.22

The company's liquidity position presents a mixed picture. While the current and quick ratios suggest a good ability to meet short-term obligations, the low cash ratio indicates a reliance on current assets other than cash. The negative operating cash flow ratio is a concern, suggesting potential difficulties in generating cash from core operations. The weighted average calculation, emphasizing recent performance, underscores the need for improved cash management.