Commercial Syn Bags Ltd

Commercial Syn Bags Limited has a debt-to-equity ratio of 0.76, indicating a moderate level of leverage, and a current ratio of 1.36, suggesting it has sufficient short-term assets to cover its short-term liabilities. The company's return on equity (ROE) is 11.41%, and its return on assets (ROA) is 5.56%, both of which are key indicators of profitability and efficiency in asset utilization. The company's profitability, as measured by ROE and ROA, is in line with the industry's preferred metrics, which emphasize asset efficiency and return generation. However, the operating income of INR 267 million and net income of INR 171.2 million suggest that the company is generating modest returns relative to its revenue of INR 3.48 billion. The gross profit of INR 1.64 billion indicates a healthy margin, but the operating margin is relatively low at 7.67%. The company's revenue is primarily derived from its Manufacturing segment, with the Other Segments contributing a smaller portion. Geographically, the company has a customer base in the European Union, the United Kingdom, the United States, and Latin America, indicating a diversified geographic exposure. However, the concentration of revenue in specific regions or customers is not disclosed, which could pose a concentration risk. The company's growth trajectory is modest, with a free cash flow of INR 175.6 million and a capital expenditure of INR -94 million. The outlook for the current fiscal year and the next fiscal year is not explicitly provided, but the company's operating cash flow of INR 10.17 million suggests limited cash generation. The risk assessment indicates a medium liquidity risk and a low dilution risk, with key flags including negative net cash after subtracting total debt. Recent events, such as filings and transcripts, are not detailed in the provided data. However, the company's engagement in trading of granules and solar power generation suggests diversification efforts beyond its core packaging business.