What is Shah Construction Co Financial Strength?
Shah Construction Co has the Financial Strength Rank of 1. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Shah Construction Co 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.
Shah Construction Co did not have earnings to cover the interest expense.
Shah Construction Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.00.
As of today, Shah Construction Co's Altman Z-Score is -1.40.
Competitive Comparison of Shah Construction Co's Financial Strength
For the Engineering & Construction subindustry, Shah Construction Co'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.
Shah Construction Co's Financial Strength Distribution in the Construction Industry
For the Construction industry and Industrials sector, Shah Construction Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where Shah Construction Co's Financial Strength falls into.
Shah Construction Co 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:
Shah Construction Co's Interest Expense for the
months ended in Dec. 2023 was ₹-10.71 Mil. Its Operating Income for the
months ended in Dec. 2023 was ₹-0.73 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was ₹0.00 Mil.
Shah Construction Co's Interest Coverage for the quarter that ended in Dec. 2023 is
| Shah Construction Co did not have earnings to cover the interest expense. |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Shah Construction Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 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.
Shah Construction Co has a Z-score of -1.40, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -1.4 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.
Shah Construction Co (BOM:509870) Business Description
Traded in Other Exchanges
N/A
Address
11, Shah industrial Estate, New Link Road, Opposite Anna Temple, Andheri (West), Mumbai, MH, IND, 400 053
Shah Construction Co Ltd is engaged in the development of land and construction of buildings as builders and developers. The company undertakes complete or partial erections and construction of buildings and works of all descriptions including electric works, water works, road building, drainage, and sewage work. It also undertakes machining, timber, and wood-work for building and constructional work of all descriptions, for a house office or shop fittings, and fittings of all kinds, for mouldings, casings, capping, and other appliances, for electric and other cables, and for sundry parts and appliances for cotton, silk, wooden and other mills, and for cotton, fiber, and other presses.
Shah Construction Co (BOM:509870) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BOM:509870 has been successfully added to your