Zuari Industries Ltd

Growth Ratio Summary

Growth Score : 4.00

The company demonstrates mixed growth performance. While operating profit and asset growth rates are positive, revenue, EPS, and net income growth rates are negative. This suggests that the company is expanding its operations and improving profitability at the operating level, but struggles to translate this into bottom-line growth. The company needs to translate this into bottom line growth.

Financial Ratio Summary

Financial Score : 4.80

The company's financial ratios present a mixed picture. Book value per share is strong, and capital expenditures are well-managed. However, adjusted EPS and DPS are low, and cash EPS is weak. This suggests that while the company has a solid asset base, its earnings performance and shareholder returns need improvement. The company needs to improve its earnings performance.

Profitability Ratio Summary

Profitability Score : 5.60

The company's profitability ratios present a mixed view. While returns on capital employed and equity are strong, gross profit, operating, and net margins are very low, and return on assets is weak. This suggests that while the company is effective at generating returns on its capital and equity, it struggles to convert sales into profits. The company needs to convert sales into profits.

Efficiency Ratio Summary

Efficiency Score : 4.67

The company's efficiency in asset utilization is mixed. While days sales in inventory and receivable days are managed well, the turnover ratios for fixed assets, inventory, receivables, and capital are low, suggesting that the company is not effectively using its assets to generate revenue. This could point to operational inefficiencies or underutilized resources. The company needs to work on its operational efficiency.

Coverage Ratio Summary

Coverage Score : 7.60

The company's coverage ratios reflect a mixed ability to cover its financial obligations. While equity dividend coverage is strong, the interest coverage ratio is just average, suggesting a moderate capacity to meet interest expenses. This indicates that the company's dividend payments are well-supported by earnings, but its ability to handle debt-related costs is only moderate. The company needs to maintain its financial obligations.

Solvency Ratio Summary

Solvency Score : 10.00

The solvency of the company is strong, characterized by a sound equity position and minimal reliance on debt. This suggests a lower risk of financial distress and a greater capacity to absorb financial shocks. The FMCG sector generally benefits from stable demand, which supports consistent equity levels. The company is at a comfortable position.

Liquidity Ratio Summary

Liquidity Score : 2.00

The liquidity position of the company is weak, indicating potential difficulties in meeting its short-term obligations. The company has very low current, quick and cash ratio. However, FMCG companies typically maintain lower liquidity due to the fast-moving nature of their inventory and sales. The company needs to maintain its short term obligations.