GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Rajshree Sugars & Chemicals Ltd (BOM:500354) » Definitions » Financial Strength

Rajshree Sugars & Chemicals (BOM:500354) Financial Strength : 3 (As of Dec. 2024)


View and export this data going back to 1992. Start your Free Trial

What is Rajshree Sugars & Chemicals Financial Strength?

Rajshree Sugars & Chemicals 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:

Rajshree Sugars & Chemicals 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 rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Rajshree Sugars & Chemicals did not have earnings to cover the interest expense. Rajshree Sugars & Chemicals's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.00. As of today, Rajshree Sugars & Chemicals's Altman Z-Score is 1.30.


Competitive Comparison of Rajshree Sugars & Chemicals's Financial Strength

For the Confectioners subindustry, Rajshree Sugars & Chemicals'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.


Rajshree Sugars & Chemicals's Financial Strength Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Rajshree Sugars & Chemicals's Financial Strength distribution charts can be found below:

* The bar in red indicates where Rajshree Sugars & Chemicals's Financial Strength falls into.


;
;

Rajshree Sugars & Chemicals 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:

Rajshree Sugars & Chemicals's Interest Expense for the months ended in Dec. 2024 was ₹-38 Mil. Its Operating Income for the months ended in Dec. 2024 was ₹-230 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was ₹0 Mil.

Rajshree Sugars & Chemicals's Interest Coverage for the quarter that ended in Dec. 2024 is

Rajshree Sugars & Chemicals did not have earnings to cover the interest expense.

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. Rajshree Sugars & Chemicals Ltd interest coverage is 1.27, which is low.

2. Debt to revenue ratio. The lower, the better.

Rajshree Sugars & Chemicals's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 3247.492
=0.00

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.

Rajshree Sugars & Chemicals has a Z-score of 1.30, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.3 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Rajshree Sugars & Chemicals  (BOM:500354) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Rajshree Sugars & Chemicals 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.


Rajshree Sugars & Chemicals Financial Strength Related Terms

Thank you for viewing the detailed overview of Rajshree Sugars & Chemicals's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Rajshree Sugars & Chemicals Business Description

Traded in Other Exchanges
Address
The Uffizi, 338/8, Avanashi Road, Peelamedu, Coimbatore, TN, IND, 641 004
Rajshree Sugars & Chemicals Ltd is engaged in the business of white crystal sugar, co-generation of power, and industrial alcohol. The company's segments include Sugar, Cogeneration, and Distillery. The Sugar segment consists of white crystal sugar, Demerara sugar, White sugar sachets, and Demerara sugar sachets. The Cogeneration segment includes the co-generation of electricity. Its Distillery segment is involved in the manufacturing of rectified spirit, anhydrous alcohol, and extra-neutral alcohol. The by-products such as molasses and bagasse are used by industries such as distillery and power plants for producing alcohol and power. The majority of revenue is generated from the Sugar segment. The company operates within India.

Rajshree Sugars & Chemicals Headlines

No Headlines