What is Damodar Industries Financial Strength?
Damodar Industries has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Damodar Industries Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
Damodar Industries's Interest Coverage for the quarter that ended in Mar. 2024 was 0.87.
Damodar Industries's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.37.
As of today, Damodar Industries's Altman Z-Score is 2.31.
Competitive Comparison of Damodar Industries's Financial Strength
For the Textile Manufacturing subindustry, Damodar Industries's Financial Strength, along with its competitors' market caps and Financial Strength 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.
Damodar Industries's Financial Strength Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Damodar Industries's Financial Strength distribution charts can be found below:
* The bar in red indicates where Damodar Industries's Financial Strength falls into.
Damodar Industries Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Damodar Industries's Interest Expense for the
months ended in Mar. 2024 was ₹-74 Mil. Its Operating Income for the
months ended in Mar. 2024 was ₹65 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹977 Mil.
Damodar Industries's Interest Coverage for the quarter that ended in Mar. 2024 is
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Damodar Industries Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
2. Debt to revenue ratio. The lower, the better.
Damodar Industries's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Damodar Industries has a Z-score of 2.31, indicating it is in Grey Zones. This implies that Damodar Industries is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.31 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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.
Damodar Industries (BOM:521220) Business Description
Traded in Other Exchanges
Address
Pandurang Budhkar Marg, 19/22 and 27/30, Madhu Estate, Worli, Mumbai, MH, IND, 400013
Damodar Industries Ltd is a textile manufacturing company. The company is engaged in the business of manufacture and export of cotton yarn. The Company produces a variety of products ranging from NE 12, NE16, NE 20, NE 24 NE 30 Carded and Combed and blended varieties of Cotton Yarn. Geographically operates through the region of India.
Damodar Industries (BOM:521220) Headlines
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