Competent Automobiles Company Ltd

Competent Automobiles Company Ltd has a debt-to-equity ratio of 0.94, indicating a moderate level of leverage, and a current ratio of 1.25, suggesting limited short-term liquidity cushion. The company reported negative operating cash flow of INR 178.12 million and capital expenditure of INR 721.72 million, indicating ongoing investment in operations despite cash outflows.

The company's return on equity of 2.8% and return on assets of 1.39% are below the industry median for ROE and ROA, suggesting weaker profitability relative to peers. These metrics indicate that the company is not generating strong returns on its equity or asset base compared to the industry average.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification, implying high exposure to regional economic conditions and market risks. There is no information on revenue by geographic region, but the lack of segment diversification suggests a potential concentration risk.

Looking ahead, the company is expected to maintain a stable revenue trajectory, with no significant growth or decline projected in the next fiscal year. However, the negative operating cash flow and high capital expenditure may constrain its ability to fund growth organically without external financing.

The company faces medium liquidity risk due to negative net cash after subtracting total debt, and while dilution risk is currently low, the high leverage and negative cash flow could increase the likelihood of future equity or debt issuance. No recent events or filings have been disclosed that would significantly alter the company's risk profile or strategic direction.

Revenue grew at a 15.4% CAGR over four years, demonstrating strong top-line expansion for the company.

Free cash flow turned positive in the latest period, reversing the negative trend from the prior year.

Dilution risk is assessed as low, suggesting minimal threat to existing shareholder equity value.

Credit risk is flagged as high, indicating substantial potential for financial distress or default.

Long-term debt increased to 4.1 billion INR, raising concerns about rising leverage and solvency.

Cash conversion ratio of -1.85 is in the bottom quartile, highlighting weak cash generation.

Revenue INR 21.17B, +22,2% YoY; Operating income +21,9% YoY.

• ▍Revenue INR 21.17B, +22,2% YoY
• ▍Operating income +21,9% YoY
• ▍Net income +11,4% YoY
• ▍Free cash flow −196,6% YoY
• ▍Net margin 1.3%

Revenue INR 17.32B, +39,0% YoY; Operating income +43,6% YoY.

• ▍Revenue INR 17.32B, +39,0% YoY
• ▍Operating income +43,6% YoY
• ▍Net income +27,1% YoY
• ▍Free cash flow −41,8% YoY
• ▍Net margin 1.4%

Revenue INR 12.46B, +3,3% YoY; Operating income −7,0% YoY.

• ▍Revenue INR 12.46B, +3,3% YoY
• ▍Operating income −7,0% YoY
• ▍Net income +12,2% YoY
• ▍Free cash flow +20,5% YoY
• ▍Net margin 1.6%

Revenue INR 12.05B; Operating income INR 340.5M.

• ▍Revenue INR 12.05B
• ▍Operating income INR 340.5M
• ▍Net margin 1.4%