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Valiant Communications (BOM:526775) Financial Strength : 10 (As of Dec. 2024)


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What is Valiant Communications Financial Strength?

Valiant Communications has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Valiant Communications Ltd shows strong financial strength.

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.

Valiant Communications did not have earnings to cover the interest expense. Valiant Communications's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.00. As of today, Valiant Communications's Altman Z-Score is 37.49.


Competitive Comparison of Valiant Communications's Financial Strength

For the Communication Equipment subindustry, Valiant Communications'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.


Valiant Communications's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Valiant Communications's Financial Strength distribution charts can be found below:

* The bar in red indicates where Valiant Communications's Financial Strength falls into.


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Valiant Communications 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:

Valiant Communications's Interest Expense for the months ended in Dec. 2024 was ₹-0.5 Mil. Its Operating Income for the months ended in Dec. 2024 was ₹-5.5 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was ₹0.0 Mil.

Valiant Communications's Interest Coverage for the quarter that ended in Dec. 2024 is

Valiant Communications did not have earnings to cover the interest expense.

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. Valiant Communications Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

Valiant Communications'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) / 334.276
=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.

Valiant Communications has a Z-score of 37.49, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 37.49 is strong.

* 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.


Valiant Communications  (BOM:526775) 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.

Valiant Communications has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.


Valiant Communications Financial Strength Related Terms

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Valiant Communications Business Description

Traded in Other Exchanges
N/A
Address
71/1, Shivaji Marg, New Delhi, IND, 110015
Valiant Communications Ltd is an Indian company engaged in the manufacturing Communication Equipment for power utilities / other utilities and engaged in its allied services. It offers communication and transmission products and solutions for the Power Utility sector including power generation, transmission, distribution, communication, Smart Grid and Renewables (Hydro, Wind, and Solar). It also provides products and solutions for Oil and Gas sector, Railways and Metro rail networks and Airport communications networks. Some of the products provided by the company include NTP Sub-Master Clock, IP Multiplexer, and Time Display Units. Geographically the company generates revenue from India, the USA, Europe, and the rest of the world, where the majority is generated from India.

Valiant Communications Headlines

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