What is Sharda Cropchem Financial Strength?
Sharda Cropchem has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Sharda Cropchem Ltd shows strong financial strength.
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.
Sharda Cropchem did not have earnings to cover the interest expense.
Sharda Cropchem's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.00.
As of today, Sharda Cropchem's Altman Z-Score is 2.40.
Competitive Comparison of Sharda Cropchem's Financial Strength
For the Agricultural Inputs subindustry, Sharda Cropchem'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.
Sharda Cropchem's Financial Strength Distribution in the Agriculture Industry
For the Agriculture industry and Basic Materials sector, Sharda Cropchem's Financial Strength distribution charts can be found below:
* The bar in red indicates where Sharda Cropchem's Financial Strength falls into.
Sharda Cropchem 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:
Sharda Cropchem's Interest Expense for the
months ended in Mar. 2024 was ₹32 Mil. Its Operating Income for the
months ended in Mar. 2024 was ₹7,127 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹78 Mil.
Sharda Cropchem's Interest Coverage for the quarter that ended in Mar. 2024 is
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Sharda Cropchem Ltd has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Sharda Cropchem'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.
Sharda Cropchem has a Z-score of 2.40, indicating it is in Grey Zones. This implies that Sharda Cropchem 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 2.4 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.
Sharda Cropchem (BOM:538666) Business Description
Traded in Other Exchanges
Address
Dashrathlal Joshi Road, 2nd Floor, Prime Business Park, Vile Parle (West), Mumbai, MH, IND, 400 056
Sharda Cropchem Ltd is an agrochemical company based in India. It markets and sells formulations and active ingredients for agricultural purposes world wide through its subsidiaries. its business is obtained from the European continent. Its customers are also spread across North America, Latin America, and the Rest of the world. The company functions through two segments, which are Agrochemicals, and Non Agrochemicals. The company earns its income through the development and sale of agrochemicals such as insecticides, herbicides, fungicides, and biocides. The company also sells conveyor belts and V-belts under the belts segment.
Sharda Cropchem (BOM:538666) Headlines
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