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Kaushalya Infrastructure Development (BOM:532925) Financial Strength : 3 (As of Mar. 2024)


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What is Kaushalya Infrastructure Development Financial Strength?

Kaushalya Infrastructure Development 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:

Kaushalya Infrastructure Development Corp 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.

Kaushalya Infrastructure Development did not have earnings to cover the interest expense. Kaushalya Infrastructure Development's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.00. As of today, Kaushalya Infrastructure Development's Altman Z-Score is 1.00.


Competitive Comparison of Kaushalya Infrastructure Development's Financial Strength

For the Engineering & Construction subindustry, Kaushalya Infrastructure Development'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.


Kaushalya Infrastructure Development's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Kaushalya Infrastructure Development's Financial Strength distribution charts can be found below:

* The bar in red indicates where Kaushalya Infrastructure Development's Financial Strength falls into.



Kaushalya Infrastructure Development 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:

Kaushalya Infrastructure Development's Interest Expense for the months ended in Mar. 2024 was ₹-0.01 Mil. Its Operating Income for the months ended in Mar. 2024 was ₹-4.42 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹0.00 Mil.

Kaushalya Infrastructure Development's Interest Coverage for the quarter that ended in Mar. 2024 is

Kaushalya Infrastructure Development 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.

Kaushalya Infrastructure Development's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 1.98
=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.

Kaushalya Infrastructure Development has a Z-score of 1.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1 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.


Kaushalya Infrastructure Development  (BOM:532925) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Kaushalya Infrastructure Development 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.


Kaushalya Infrastructure Development Financial Strength Related Terms

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Kaushalya Infrastructure Development (BOM:532925) Business Description

Traded in Other Exchanges
Address
HB 170, Sector III, Salt Lake, Kolkata, WB, IND, 700106
Kaushalya Infrastructure Development Corp Ltd is engaged in executing construction contracts relating to infrastructure, real estate developments, acquisition and development, and sale of land. The company is also engaged in operating hotels. The company operates into segments such as Construction including roads, bridges and infrastructure development, housing development, renewable energy projects; Hotel; and Other services/activities. It generates a majority of its revenue from the Hotel. Geographically, it operates in India.

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