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SECTOR: CERAMIC PRODUCTS REPORTING DATE: 1ST JUNE, 2016
Euro Ceramics Ltd. www.eurovitrified.com
Euro Ceramics Ltd 1st June, 2016 TABLE 1 - MARKET DATA (STANDALONE) (As on 31st May, 2016)
NSE Code - EUROCERA NSE Market Price (₹) 2.95 NSE Market Cap. (₹ Cr.) 10.05
Sector - Ceramic Products Face Value (₹) 10.00 Equity (₹ Cr.) 33.74
52 week High/Low (₹) 8.25/2.30 Net worth (₹ Cr.) -173.86
Business Group - Indian Private TTM P/E N.A. Traded Volume (Shares) 22,105
Year of Incorporation - 2002 TTM P/BV N.A. Traded Volume (lacs) 0.65
Source - Capitaline
Corporate Office: COMPANY BACKGROUND
208, Sangam Arcade Vallabhbhai Euro Ceramics Ltd was incorporated as private limited Company under the name 'Euro
Ceramics Private Limited'' with certification of incorporation dated 16th April, 2002.
Subsequently the Company became a public limited Company on 16th November, 2004
under the name Euro Ceramics Ltd. The Company is engaged in the business of Vitrified
Ceramic Tiles and Aluminium Extruded Sections. After the devastating earthquake of 26th
January, 2001 in Kutch Region of Gujarat, the Company decided to establish
manufacturing facilities for Vitrified Ceramic Tiles and Aluminium Extruded Sections at
Bhachau, Kutch. The major Plant & Machinery required for manufacturing Vitrified
Ceramic Tiles were imported from SACMI, Italy. The first line for manufacturing Vitrified
Ceramic Tiles with an installed capacity of 35,880 MTPA commenced operations in
October 2003 along with manufacturing of Aluminium Extruded Sections with installed
capacity of 1,800 MTPA. During July 2004, considering the growing demand for the
products, the Company decided to install a second line for manufacturing Vitrified Ceramic
Tiles with an installed capacity of 44,091 MTPA, for which, once again we entered into a
contract for supply of major Plant & Machinery with SACMI, Italy. The second line for
manufacturing Vitrified Ceramic Tiles commenced operations in December 2005. The
manufacturing facility for Vitrified Ceramic Tiles is ISO: 9001 certified. Vitrified Ceramic
Tiles have also got the approval from reputed technical Institutions like Veermata Jijabai
Technological Institute (VJTI), Mumbai and Applied Consumer Services Inc., Finland, U.S.A.
During February 2005, the Company started operations of Jewellery Division. In June 2005,
Joint Director General of Foreign Trade, Government of India, accredited the Company as
One Star Export House. During November 2005, the Company discontinued the operations
of Jewellery Division. On December 30, 2005, Euro Merchandise (India) Limited, became
the subsidiary, which is engaged into business of trading of wall and floor tiles, which
include varieties like ceramic, glazed porcelain and rustic tiles. During March 2006, the
Company commenced a 10 MW lignite based captive power plant and in August 2006, the
Company also commenced a Gasifier for generating gas in order to reduce fuel costs and
to achieve self Sufficiency for gas.
Road, Station Road Vile Parle (W),
Mumbai – 400 056, Maharashtra
Company Website:
www.eurovitrified.com
TABLE 2 - PRICE PERFORMANCE
31st May,
2016
29th May,
2015
30th May,
2014
% Change CAGR for 2
years 2016 vs 2015 2015 vs 2014
Price (₹) 2.95 5.00 6.05 -41.00% -17.36% -30.17%
Trading Volume (Shares)
(yearly avg.) 60,752 4,504 1,595 1248.69% 182.42% -
NSE Market Cap. (in ₹ Cr.) 9.95 16.87 20.41 -41.02% -17.34% -30.18%
Source - Money Control
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TABLE 3 - FINANCIALS
(₹ Cr.) 2015 2014 2013 % Change CAGR for
2 years 2015 vs 2014 2014 vs 2013
Net Worth -161.07 -39.69 -17.31 N.A. N.A. N.A.
Current Assets 96.28 131.73 140.13 -26.91% -5.99% -17.11%
Non-Current Assets 324.16 413.90 450.94 -21.68% -8.21% -15.21%
Total Assets 420.45 545.63 591.06 -22.94% -7.69% -15.66%
Investments 58.67 94.37 95.90 -37.83% -1.60% -21.78%
Finance Cost 0.70 1.64 49.89 -57.32% -96.71% -88.15%
Long Term Liabilities 47.46 48.39 387.54 -1.92% -87.51% -65.01%
Current Liabilities 534.06 536.93 220.83 -0.53% 143.14% 55.51%
Turnover 49.71 76.63 88.61 -35.13% -13.52% -25.10%
Profit After Tax (PAT, ₹ Cr.) -62.04 -34.98 -107.00 N.A. N.A. N.A.
EPS (₹) -18.00 -13.00 -34.00 N.A. N.A. N.A.
Source - Money Control/Annual Report
Discussion as per Company:
During the FY 2014-15 the revenue were generated from Sanitaryware and Marble Division of the Company. The Vitrified Tiles
and Aluminum Section plants were non-operative during the year due to shortages of working Capital. There was no business
from Realty Division.
Revenue: Net sales during the financial year 2014-15 was ` 49.71 crores against the previous year’s net sales of ` 76.63 crores,
showing decrease by ` 26.92 crores on account of low off take of Marble. 97% business of the Company is through domestic
market during the year, which is almost in the same ratio of previous year.
Finance Cost: The Company’s finance cost for the financial year 2014-15 was ` 0.70 crores, mainly consist of interest on some of
the borrowings, interest on late payment of statutory dues, bank charges etc.
Investment: Investment as at 31st March, 2015 is reduced by ` 1.44 crores due to amount written off and provision made for
permanent diminution in the value of investment made in Subsidiaries.
Current Assets & Current Liabilities: Current Assets of the Company as on 31st March, 2015 was ` 96.28 crores reduced by `
35.45 crores, mainly on account of provision made for diminution in the value of the short term loans and advances made to
partnership firm. Current Liabilities of the Company as on 31st March, 2015 was ` 534.06 crores as against ` 536.93 crores as on
31st March, 2014, showing decrease of ` 2.87 crores on account of trade payable and other current liabilities.
Long Term Borrowings: The long term borrowings is reduced in absolute number by ` 0.93 crores as on 31st March, 2015 mainly
on account of repayment of some of the deposits and loans.
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AUDIT QUALIFICATIONS
Audit Qualifications in last 3 years: The Auditors have raised following qualifications in the Annual Report for FY 2014-15
Status of the Audit Qualification(s) and Management Response:
I. The financial statement have been prepared on a “going concern” basis, Inspite the fact that the Company's
financial facilities/arrangements have expired and the same are overdue for repayment and the net worth of the
Company fully eroded and the lenders and creditors have initiated legal proceedings against the Company for
recovery.
The Directors would like to state that the Company is operational and Manufacturing Marble and Sanitaryware
Products and employed more than 200 manpower. The Company is also making serious efforts in negotiating with
the banks and resolving the issues with banks. The management has taken and been taking all diligent steps
under legal advice, to defend the Company in all the litigation. Considering the ample opportunities in the market
and growth drivers for the industry per say, your Directors are optimistic about the turnaround of the Company
with the infusion of the long term funds and with support of the lenders. The Company can derive a
comprehensive package under BIFR for the secured and unsecured lenders with potential future earning plans,
for resolution of its debts.
II. The Company has not provided for interest on financing facilities amounting to ₹87.58 crores for the year ending
March 31, 2015. Had the same been provided, the loss for the year ending March 31, 2015, would have increased
by ₹ 87.58 crores. The corresponding liabilities would also have increased by ₹87.58 crores as at March 31, 2015.
The Company on the basis of registration filed u/s. 15(1) of the Sick Industrial Companies (Special Provisions) Act,
1985, before the Hon'ble Board for Industrial & Financial Reconstruction, and the hearings for which are in
process for determination of sickness and on the basis of negotiation with the lenders for reduction in interest,
rephasement in terms of borrowings etc., has not provided for interest to the tune of ₹ 87.58 crores, (calculated
based on last sanction letters in hand) on financing facilities, for the year ending March 31, 2015.
III. The Company has not provided for impairment or diminishing value of its assets/investment as per 'Accounting
Standard 28 – Accounting for Impairment of Assets' as notified under the Companies (Accounting Standards)
Rules, 2006 read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. The effect of such Impairment or diminishing value has not
been quantified by the management and hence the same is not ascertainable.
The Company has made the provisions for diminution in the value of its investments/assets wherever required.
Management has a policy to maintain the assets and keep them in working condition, so that its value does not
get affected in long run. The management is optimistic about realizing the value of its Assets / Investments
nearest to its carrying value, and there is no further diminution in the value of its assets/investment other than
depreciation / amortization provided for.
IV. There has been delay in transferring unclaimed dividend amounting to ₹25,303/- pertaining to financial year
2006- 07 into the Investor Education and Protection Fund, by the Company during the year ended March 31,
2015.
The management would like to state that the delay in transferring the amounts to the Investor Education and
Protection Fund was unintentional and due to oversight.
V. In respect of loans, secured or unsecured, granted by the Company to companies, firms or other parties covered
in the register maintained under section 189 of the Act, here are no stipulations made regarding repayment of
principal amount and interest. Hence we are unable to comment as to regularity of repayments of principal and
interest amount.
The directors would like to state that the Loans and Advances are given in the normal course of business to a firm
where your Company is a partner with majority share.
VI. The Company has accumulated losses at the end of the financial year and at the immediately preceding financial
year and the Company has defaulted in repayment of loans and interest to the banks.
The directors would like to state that the loss is mainly on account of Depreciation and provisions made for
diminution in the value of the investment/ assets. However, the Company was able to generate marginal cash
profit of ` 2.31 crores during the year under review. The Company had working capital shortages during the year
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and was unable to run all the plants. Further the plants which were operational during the year were also run at
lower capacity due to liquidity crunch, despite of the demand of the products in the market. Due to inadequate
cashflows from the operations of the Company, there were defaults in the repayment of the loans and interest to
the Banks. However, the management is hopeful with the changing economic scenario, of arriving at a
comprehensive business restructuring along with the debt realignment proposal with the lenders under BIFR.
VII. The Company has given the guarantee for loans taken by its subsidiary from bank. The terms and conditions of
the same are not prejudicial to the interest of the Company. The said subsidiary has been continuously incurring
losses and its net worth has been fully eroded and there is substantial doubt whether the said subsidiary would
be able to repay its liabilities or realize its assets.
The directors would like to state that the management of the subsidiary Company is hopeful of reviving its
business with the changing economic scenario and is negotiating with the lender for amicable settlement of its
dues.
VIII. No provision for depletion in the value of the investment and loans and advances made/given by the Company to
its wholly owned subsidiary company M/s. Euro Merchandise (India) Ltd.
The directors would like to state that the said investment is strategic and long term in nature. The management is
hopeful of turning around of business of the subsidiary company and recovery of the loans and advances given to
the subsidiary. Hence in the opinion of the management, no provision is necessary for the depletion in the value
of the investment.
IX. All the directors are disqualified as on March 31, 2014 from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
The directors would like to state that disqualification was on account of the default in repayment of deposit and
interest there on due to liquidity crisis in the Company.
X. Non-compliance in respect of the deposits accepted within the meaning of section 58Aof the Companies Act,
1956.
Due to liquidity crunch and urgent requirements of working capital, the Company has paid higher interest rate
then the prescribed rate under the Companies (Acceptance of Deposits) Rules, 1975 to some of the depositors.
The Company has implemented the Corporate Debt Restructuring Scheme during the previous year but the
operations of the Company are under stress due to various internal and external factors including liquidity crunch,
adverse market conditions, economic slowdown and fixed cost burden due to low capacity utilization. Under such
situation, the Company could not maintain the liquid asset ratio as required under the said rules.
XI. Accumulated losses, cash loss during the year, erosion of net worth and default in payment to banks for
instalment and interest dues.
The Company was passing through severe liquidity crunch during the year. The capacity utilization in all the
divisions was very low due to non-availability of working capital, delay in implementation of CDR package, delay in
release of additional working capital by banks, adverse market conditions and price competition. The cost of
production was also high due to low capacity utilization, increasing fuel prices and unabsorbed fixed cost. In the
course of time the Company incurred cash losses and there has been default in repayment of instalments and
interest dues to banks. The Directors of the Company are hopeful of turnaround of the business of the Company
and to rectify all above in the years to come.”
Response Comment
Frequency of Qualifications - The Auditors have raised qualifications
since FY 2013-13
Have the Auditors made any adverse remark in last 3 years? No -
Are the material accounts audited by the Principal Auditors? Yes -
Do the financial statements include material unaudited financial
statements? No -
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SECTOR: CERAMIC PRODUCTS REPORTING DATE: 1ST JUNE, 2016
Euro Ceramics Ltd. www.eurovitrified.com
TABLE 4: BOARD PROFILE (As on 31st March, 2015)
Regulatory Norms Company
% of Independent Directors on the Board 50% 67%
% of Promoter Directors on the Board - 33%
Number of Women Directors on the Board Atleast 1 1
Classification of Chairman of the Board -
Executive Promoter
Director
Is the post of Chairman and MD/CEO held by the same person? - Yes
Average attendance of Directors in the Board meetings (%) - 100%
Source - Money Control/Annual Report
Composition of Board: As per Regulation 17(i)(b) of the Listing Regulations, 2015, the Company should have at least 50%
Independent Directors as the Chairman of the Board is an Executive Promoter Director. The Company as on 31st march, 2015
has 67% of Independent Directors on the Board and hence, it meets the regulatory requirements.
Board Diversity: The Company has 6 directors out of which 5 are male and 1 is female.
Holding of position of MD/ CEO & Chairman by same person: The Company has appointed Mr. Nenshi L. Shah as the Chairman
and Managing Director of the Company. Appointment of a single person as the Chairman and Managing Director of the
Company is not a good governance practice as this may lead to concentration of power in a single person.
TABLE 5 - FINANCIAL RATIOS
Ratios 2015 2014 2013 % Change
2015 vs 2014 2014 vs 2013
Turn
ove
r
Rat
ios
Inventory Turnover 1.55 2.39 2.21 -35.19% 8.06%
Debtors Turnover 3.79 5.18 4.35 -26.87% 19.31%
Fixed asset Turnover 0.15 0.19 0.20 -17.17% -5.78%
Current Asset Turnover 0.52 0.58 0.63 -11.24% -8.01%
Ret
urn
Rat
ios Operating Profit Margin -53.33% -45.67% -120.75% N.A. N.A.
Net Profit Margin -124.80% -45.65% -120.75% N.A. N.A.
Return on Assets (ROA) -14.76% -6.41% -18.10% N.A. N.A.
Return on Equity (ROE) N.A. N.A. N.A. N.A. N.A.
Return on Capital Employed (ROCE) N.A. N.A. N.A. N.A. N.A.
Liq
uid
ity
Rat
ios
Current Ratio 0.18 0.25 0.63 -26.52% -61.34%
Quick Ratio 0.12 0.19 0.45 -35.25% -59.04%
Cash Ratio 0.10 0.16 0.36 -39.50% -56.18%
Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.
Solv
ency
Rat
ios Debt to equity ratio N.A. N.A. N.A. N.A. N.A.
Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Trad
ing
Rat
ios
Market Cap / Sales 0.22 0.14 0.12 54.15% 15.63%
Market Cap/ Net Worth N.A. N.A. N.A. N.A. N.A.
Market Cap/PAT N.A. N.A. N.A. N.A. N.A.
Market Cap/EBITDA 5.41 N.A. N.A. N.A. N.A.
Trading Volume (shares) (avg. of 1
year) 53,844 4,559 1,323 1,080.95% 244.63%
Trading Volume (shares) (high in 1
year) 21,19,672 59,459 9,784 3,464.93% 507.72%
Trading Volume (shares) (low in 1
year) 3.00 1.00 3.00 200.00% -66.67%
Ratio - High/low trading volume 7,06,557 59,459 3,261 1,088.31% 1,723.15%
Ratio - High/average trading volume 39.37 13.04 7.40 201.87% 76.34%
Source - Money Control
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TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS
Mar' 2016 Mar' 2015 Mar' 2014 Comments
Shar
eho
ldin
g
Promoter shareholding 10.50% 22.24% 22.33% The promoter shareholding decreased
from 22.33% in Mar’ 2014 to 10.50% in
Mar’ 2016 due to invocation of pledged
shares. The shareholding of public
institution decreased from 30.11% in Mar’
2014 to 13.91% in Mar’2016 and that of
public others increased from 47.56% in
Mar’ 2014 to 75.59% in Mar’2016. The
promoters have pledged 99.99% of their
shareholding and 10.50% of Total
shareholding.
Public - Institutional shareholding 13.91% 29.47% 30.11%
Public - Others shareholding 75.59% 48.28% 47.56%
Non Promoter Non Public
Shareholding - - -
TABLE 6 (B): OWNERSHIP & MANAGEMENT RISKS
Market Activity of Promoters The Promoters of the Company have sold their shares in the secondary market in last two
years.
Preferential issue to promoters No preferential issue of shares was made to the promoters in last three years
Preferential issue to others
During the FY 2013-14 the Company has issued and allotted 51,59,705 Equity Shares of `
10/- each at a price of ` 24.42/- per share (including premium of ` 14.42/- per share)
upon conversion of even number of Compulsorily Convertible Debentures which were
issued as per the terms of Letter of Approval (LOA) issued by Corporate Debt
Restructuring (CDR) cell, dated 29th October, 2011 on preferential basis.
GDRs issued by the Company The Company did not issue any GDRs in last three years
Issue of ESOPs/Issue of shares
other than Preferential allotment The Company does not have any ESOP Scheme.
Source - Annual Report
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Glossary
Equity: The equity shares capital of the Company
Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders’ funds of the Company
Turnover: The revenue earned from the operations of the Company
EPS: Earning Per Share is net profit earned by the Company per share
𝐸𝑃𝑆 =Profit After Tax
Number of outstanding shares
P/E ratio: It is the ratio of the Company’s share price to earnings per share of the Company
𝑃/𝐸 𝑟𝑎𝑡𝑖𝑜 =Price of each share
Earnings per share
Current Assets: Cash and other assets that are expected to be converted to cash in one year
Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,
buildings, and equipment
Total Assets: Current Assets + Fixed Assets
Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the
future.
Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges
incurred during the year in relation to borrowed money.
Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.
Current Liabilities: A company's debts or obligations that are due within one year.
Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced over
a period.
𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover
Inventory
Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business
can turn its accounts receivable into cash during a period
𝐷𝑒𝑏𝑡𝑜𝑟𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover
Accounts recievables
Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover
Fixed Assets
Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover
Current Assets
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Operating Profit Margin: Operating margin is a measurement of what proportion of a Company’s revenue is left over after
paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company’s operating
income (also known as “operating profit”) during a given period by its sales during the same period.
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Operating profit
Sales Turnover
Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Net profit
Sales Turnover
Return on Assets: ROA tells you what earnings were generated from invested capital (assets)
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =Net profit
Total Assets
Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders’
equity.
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 =Net profit
Net worth
Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability
and the efficiency with which its capital is employed.
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 =Net profit
Total Debt + Equity share capital
Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts
over the next 12 months. It compares a firm's current assets to its current liabilities.
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 =Current Assets
Current Liabilities
Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.
𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories
Current Liabilities
Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.
𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories − Account Recievables
Current Liabilities
Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates a
Company's effectiveness in using its working capital.
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟
Current Assets − Current Liabilities
Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of
shareholders' equity and debt used to finance a company's assets.
𝐷𝑒𝑏𝑡 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 𝑟𝑎𝑡𝑖𝑜 =𝑆ℎ𝑜𝑟𝑡 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡 + 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡
𝑁𝑒𝑡 𝑊𝑜𝑟𝑡ℎ
Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a
Company can pay interest on outstanding debt.
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐶𝑜𝑣𝑒𝑟𝑎𝑔𝑒 𝑅𝑎𝑡𝑖𝑜 =𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐵𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑇𝑎𝑥
𝐹𝑖𝑛𝑎𝑛𝑐𝑒 𝐶𝑜𝑠𝑡
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Market Cap/Sales ratio: Market Cap/sales ratio, Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated
by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-share stock price by
the per-share revenue.
𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑆𝑎𝑙𝑒𝑠 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝
𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟
Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company’s market cap to net worth.
𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝
𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ
Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company’s market cap to net profit.
𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑃𝐴𝑇 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝
𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡
Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company’s market cap to EBITDA.
𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝐸𝐵𝐼𝑇𝐷𝐴 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝
𝐸𝐵𝐼𝑇𝐷𝐴
Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year
Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year
Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year
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Research Analyst: Waheed Shaikh