Suraj Products Ltd

Suraj Products Ltd is engaged in the mining of iron and steel, generating revenue primarily through the extraction and sale of mineral resources.

Suraj Products Ltd is classified under the Basic Materials economic sector, within the Mineral Resources business sector and the Iron & Steel industry, with a classification confidence of 0.92.

Suraj Products Ltd maintains a relatively conservative capital structure, with a debt-to-equity ratio of 0.32, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 2.63, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company's net cash position is negative after accounting for total debt, which could pose a liquidity risk if cash flow from operations does not remain stable.

In terms of profitability, the company's return on equity (ROE) is 4.47%, and its return on assets (ROA) is 3.13%. These figures are below the typical thresholds for strong performance in the mining industry, indicating that the company is generating returns, but not at a level that would be considered exceptional. The operating margin, calculated as operating income divided by revenue, is 9.42%, which is in line with the industry median for mining operations.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no significant geographic diversification reported. This concentration could expose the company to higher operational and market risks if the demand for its primary product fluctuates or if there are disruptions in its main market.

Looking ahead, the company is projected to experience a modest growth in revenue, with the outlook for the current fiscal year indicating a slight increase. The capital expenditure for the period is negative, suggesting that the company is not investing heavily in new projects or infrastructure, which may affect its long-term growth potential. The company's operating cash flow of INR 319.07 million supports its current operations and provides some flexibility for future investments.

The risk assessment for Suraj Products Ltd highlights a medium liquidity risk, primarily due to the negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no significant dilution potential identified in the basic shares outstanding. The company has not made any recent adjustments to its valuation metrics that would suggest a need for dilution, and there are no immediate signs of financial distress.

Recent events, as disclosed in the company's filings, do not indicate any major operational or financial changes. The company has not issued any new shares or engaged in significant transactions that would impact its capital structure or market position. The absence of recent dilutive events supports the low dilution risk assessment.

- Suraj Products Ltd has a moderate debt-to-equity ratio, indicating a balanced capital structure. - The company's return on equity and return on assets are below industry benchmarks, suggesting room for improvement in profitability. - Revenue is concentrated in a single business segment, increasing exposure to market volatility. - The company's liquidity position is medium, with a current ratio of 2.63, but a negative net cash position after debt. - The outlook for revenue growth is modest, with no significant capital expenditures planned. - The risk of dilution is low, and there are no recent events that suggest financial distress.

Revenue surged 49.9% year-over-year to INR 3.26 billion, demonstrating strong top-line growth momentum in the latest fiscal period.

Net income jumped 133.8% year-over-year to INR 214.3 million, indicating significant profitability expansion relative to the prior period.

Cash conversion ratio of 5.48 is best-in-class compared to the cohort median of 0.74, reflecting exceptional cash generation capabilities.

Long-term debt decreased to INR 211.2 million in the latest period, reducing leverage and improving the company's financial stability.

The company faces a high credit risk flag, suggesting potential difficulties in meeting financial obligations or servicing existing debt.

Return on equity of 4.47% remains relatively low, suggesting limited efficiency in generating profits from shareholders' equity.

Liquidity risk is rated as medium, implying potential challenges in meeting short-term financial obligations or operational needs.

Free cash flow declined significantly in FY-2 before recovering, showing volatility in cash generation across recent fiscal years.

Revenue INR 3.45B, +20,9% YoY; Operating income +6,9% YoY.

• ▍Revenue INR 3.45B, +20,9% YoY
• ▍Operating income +6,9% YoY
• ▍Net income +11,2% YoY
• ▍Free cash flow +138,3% YoY
• ▍Net margin 8.4%

Revenue INR 2.85B, +20,3% YoY; Operating income +12,8% YoY.

• ▍Revenue INR 2.85B, +20,3% YoY
• ▍Operating income +12,8% YoY
• ▍Net income +10,3% YoY
• ▍Free cash flow −41,7% YoY
• ▍Net margin 9.1%

Revenue INR 2.37B, +8,8% YoY; Operating income +64,1% YoY.

• ▍Revenue INR 2.37B, +8,8% YoY
• ▍Operating income +64,1% YoY
• ▍Net income +157,2% YoY
• ▍Free cash flow +54,2% YoY
• ▍Net margin 10.0%