Rupa & Company Ltd

Rupa & Company Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.23, indicating a relatively low reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 2.62, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company's net cash position is negative after subtracting total debt, signaling potential liquidity constraints. In terms of profitability, Rupa & Company Ltd reports a return on equity (ROE) of 8.19% and a return on assets (ROA) of 5.51%. These figures are below the industry median for Apparel & Accessories firms, which typically report ROE and ROA in the range of 10-12% and 6-8%, respectively. The company's operating margin is 9.37% (calculated from operating income of INR 1,159.12 million on revenue of INR 12,393.17 million), which is also below the industry median of 11.5%. The company's revenue is concentrated across four manufacturing facilities in India, with no disclosed geographic diversification beyond the domestic market. This concentration may expose the company to regional economic fluctuations and supply chain disruptions. The company's product portfolio is segmented into innerwear, thermal wear, and casual wear, with no disclosed segment-specific revenue breakdowns. Looking ahead, Rupa & Company Ltd is projected to experience a modest growth trajectory, with revenue expected to increase by 3-5% in the current fiscal year and 4-6% in the following year. This growth is supported by the company's daily production capacity of over 700,000 finished goods and its brand portfolio, which includes Frontline, Jon, Macroman, and others. However, the company's capital expenditure of INR -77.86 million in the latest period suggests a focus on cost optimization rather than expansion. The company's risk profile is characterized by a low dilution potential, with no significant dilution sources identified in the latest filings. However, the negative net cash position and the presence of long-term debt (INR 2,379.20 million) may pose credit risk if not managed effectively. The company's ESG governance score of 42.7 and social score of 49.4 indicate room for improvement in corporate governance and social responsibility practices. Recent events include the company's continued focus on its core hosiery and innerwear segments, with no major strategic shifts or acquisitions disclosed in the latest filings. The company's ESG controversies score of 100.0 suggests a need for enhanced transparency and stakeholder engagement in its sustainability practices.