Shree Refrigerations Ltd

Shree Refrigerations Ltd has a debt-to-equity ratio of 0.39 and a current ratio of 2.68, indicating moderate leverage and strong short-term liquidity. However, its operating cash flow is negative at -₹248.94 million, while free cash flow stands at ₹69.01 million, suggesting uneven cash generation. The company’s return on equity (ROE) of 11.81% and return on assets (ROA) of 7.3% outperform the median ROE of 8.2% and ROA of 4.9% for the Electrical Components & Equipment industry, reflecting superior asset utilization and profitability. Gross profit of ₹486.31 million and operating income of ₹228.87 million support this, with gross margin at 49.25% and operating margin at 23.18%. The company’s revenue is concentrated in the domestic market, with no disclosed international revenue in the latest financials. Its product portfolio spans marine chillers, industrial air conditioning, and customized fabrication services, with a notable client base in the Indian Navy. Outlook for FY2024 shows a 12.3% revenue growth to ₹1.11 billion, driven by increased demand in the pharma and automotive sectors. FY2025 is projected to grow by 8.7%, supported by new contracts in marine refrigeration. Risk assessment highlights medium liquidity risk due to negative net cash after debt, and low dilution risk with no near-term equity issuance plans. The company’s capital structure remains stable, with long-term debt at ₹449.13 million and total equity at ₹1.15 billion. Recent filings include a Q3 FY2024 earnings report showing a 15% YoY revenue increase, attributed to higher production in the marine segment. No material regulatory or litigation risks were disclosed in the latest 10-K equivalent.