GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Dalmia Bharat Ltd (BOM:542216) » Definitions » Beneish M-Score

Dalmia Bharat (BOM:542216) Beneish M-Score : -3.13 (As of May. 15, 2024)


View and export this data going back to 2018. Start your Free Trial

What is Dalmia Bharat Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.13 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Dalmia Bharat's Beneish M-Score or its related term are showing as below:

BOM:542216' s Beneish M-Score Range Over the Past 10 Years
Min: -3.41   Med: -2.86   Max: -2.34
Current: -3.13

During the past 8 years, the highest Beneish M-Score of Dalmia Bharat was -2.34. The lowest was -3.41. And the median was -2.86.


Dalmia Bharat Beneish M-Score Historical Data

The historical data trend for Dalmia Bharat's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dalmia Bharat Beneish M-Score Chart

Dalmia Bharat Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score
Get a 7-Day Free Trial -3.41 -2.34 -2.54 -2.85 -3.13

Dalmia Bharat Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.85 - - - -3.13

Competitive Comparison of Dalmia Bharat's Beneish M-Score

For the Building Materials subindustry, Dalmia Bharat's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Dalmia Bharat's Beneish M-Score Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Dalmia Bharat's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Dalmia Bharat's Beneish M-Score falls into.



Dalmia Bharat Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Dalmia Bharat for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.5973+0.528 * 1.0463+0.404 * 0.9187+0.892 * 1.084+0.115 * 0.9833
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0545+4.679 * -0.065192-0.327 * 1.0864
=-3.13

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was ₹8,450 Mil.
Revenue was ₹146,910 Mil.
Gross Profit was ₹119,880 Mil.
Total Current Assets was ₹78,560 Mil.
Total Assets was ₹277,490 Mil.
Property, Plant and Equipment(Net PPE) was ₹151,770 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹14,980 Mil.
Selling, General, & Admin. Expense(SGA) was ₹32,030 Mil.
Total Current Liabilities was ₹44,740 Mil.
Long-Term Debt & Capital Lease Obligation was ₹45,700 Mil.
Net Income was ₹8,260 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹26,350 Mil.
Total Receivables was ₹13,050 Mil.
Revenue was ₹135,520 Mil.
Gross Profit was ₹115,710 Mil.
Total Current Assets was ₹73,490 Mil.
Total Assets was ₹255,430 Mil.
Property, Plant and Equipment(Net PPE) was ₹134,690 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹13,050 Mil.
Selling, General, & Admin. Expense(SGA) was ₹28,020 Mil.
Total Current Liabilities was ₹44,600 Mil.
Long-Term Debt & Capital Lease Obligation was ₹32,030 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(8450 / 146910) / (13050 / 135520)
=0.057518 / 0.096296
=0.5973

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(115710 / 135520) / (119880 / 146910)
=0.853822 / 0.81601
=1.0463

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (78560 + 151770) / 277490) / (1 - (73490 + 134690) / 255430)
=0.169952 / 0.184982
=0.9187

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=146910 / 135520
=1.084

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(13050 / (13050 + 134690)) / (14980 / (14980 + 151770))
=0.088331 / 0.089835
=0.9833

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(32030 / 146910) / (28020 / 135520)
=0.218025 / 0.206759
=1.0545

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((45700 + 44740) / 277490) / ((32030 + 44600) / 255430)
=0.325922 / 0.300004
=1.0864

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(8260 - 0 - 26350) / 277490
=-0.065192

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Dalmia Bharat has a M-score of -3.13 suggests that the company is unlikely to be a manipulator.


Dalmia Bharat Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Dalmia Bharat's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Dalmia Bharat (BOM:542216) Business Description

Traded in Other Exchanges
Address
15, Barakhamba Road, Hansalaya Building, 11th and 12th Floors, New Delhi, IND, 110001
Dalmia Bharat Ltd is an India based company involved in Cement manufacturing. Its operating segments include Cement, which produces various grades of cement and its related products.

Dalmia Bharat (BOM:542216) Headlines

No Headlines