Shivalik Rasayan Ltd

Shivalik Rasayan maintains a conservative capital structure with a debt-to-equity ratio of 0.15, significantly below the industry median of 0.45, indicating a low reliance on debt financing. The company's liquidity position is characterized as medium risk, with a current ratio of 1.85, which is in line with the industry median of 1.80. However, the operating cash flow of -INR 80.75 million and a negative net cash position after subtracting total debt raise concerns about short-term liquidity.

Profitability metrics for Shivalik Rasayan are below the industry benchmarks. The company's return on equity (ROE) of 0.71% is well below the industry median of 4.2%, and its return on assets (ROA) of 0.52% is also below the median of 1.8%. These figures suggest that the company is underperforming in terms of capital efficiency and asset utilization.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes in the agricultural sector. The absence of segment-specific revenue data limits the ability to assess the performance of individual product lines or geographic regions.

Shivalik Rasayan's growth trajectory is constrained by its current financial performance. The company's operating income of INR 63.07 million and net income of INR 35.98 million indicate limited profitability. With capital expenditures of -INR 676.56 million, the company is investing heavily in infrastructure, which may impact short-term earnings but could support long-term growth.

The risk assessment highlights liquidity as a medium concern, primarily due to the negative operating cash flow and the absence of a strong cash buffer. The dilution risk is classified as low, with no significant dilution events reported in the latest filings. However, the company's reliance on capital expenditures without a corresponding increase in operating cash flow could lead to future dilution pressures.

Recent filings and transcripts do not indicate any major strategic shifts or new product launches. The company's focus remains on expanding its production capacity and maintaining its position in the domestic agricultural chemicals market.

Revenue grew 14.2% year-over-year to INR 3.12 billion, demonstrating strong top-line expansion momentum.

Net income surged 31.3% year-over-year to INR 167 million, showing significant bottom-line improvement despite margin pressures.

Free cash flow turned positive at INR 115 million, a 129.4% improvement from the previous year's negative position.

Debt-to-equity ratio of 0.15 is well below the 0.34 cohort median, suggesting a conservative and stable capital structure.

Return on equity of 0.71% is significantly below the 5.24% cohort median, indicating poor capital efficiency relative to peers.

Long-term debt increased to INR 1.05 billion, reflecting a rising leverage burden over the four-year period.

Net margin of 5.05% trails the 5.45% cohort median, suggesting weaker pricing power or cost control than competitors.

The company faces high credit risk and medium liquidity risk, posing potential financial stability challenges.

Revenue INR 2.73B, +16,4% YoY; Operating income −14,1% YoY.

• ▍Revenue INR 2.73B, +16,4% YoY
• ▍Operating income −14,1% YoY
• ▍Net income −38,7% YoY
• ▍Free cash flow −64,6% YoY
• ▍Net margin 4.7%

Revenue INR 2.34B, +9,2% YoY; Operating income −12,2% YoY.

• ▍Revenue INR 2.34B, +9,2% YoY
• ▍Operating income −12,2% YoY
• ▍Net income −19,0% YoY
• ▍Free cash flow −221,3% YoY
• ▍Net margin 8.8%

Revenue INR 2.15B, +8,7% YoY; Operating income +22,1% YoY.

• ▍Revenue INR 2.15B, +8,7% YoY
• ▍Operating income +22,1% YoY
• ▍Net income +45,5% YoY
• ▍Free cash flow +159,5% YoY
• ▍Net margin 11.9%

Revenue INR 1.98B; Operating income INR 293.7M.

• ▍Revenue INR 1.98B
• ▍Operating income INR 293.7M
• ▍Net margin 8.9%