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Shakarganj (KAR:SML) Financial Strength : 2 (As of Mar. 2025)


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What is Shakarganj Financial Strength?

Shakarganj has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Shakarganj 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.

Shakarganj did not have earnings to cover the interest expense. Shakarganj's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.04. As of today, Shakarganj's Altman Z-Score is -0.24.


Competitive Comparison of Shakarganj's Financial Strength

For the Confectioners subindustry, Shakarganj'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.


Shakarganj's Financial Strength Distribution in the Consumer Packaged Goods Industry

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

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


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Shakarganj 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:

Shakarganj's Interest Expense for the months ended in Mar. 2025 was ₨-135 Mil. Its Operating Income for the months ended in Mar. 2025 was ₨-1,166 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was ₨137 Mil.

Shakarganj's Interest Coverage for the quarter that ended in Mar. 2025 is

Shakarganj 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.

Shakarganj's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(707.781 + 137.472) / 21580.48
=0.04

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.

Shakarganj has a Z-score of -0.24, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.24 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.


Shakarganj  (KAR:SML) 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.

Shakarganj has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Shakarganj Financial Strength Related Terms

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Shakarganj Business Description

Traded in Other Exchanges
N/A
Address
Hali Road, Executive Floor, IT Tower, 73 E 1, Gulberg III, Lahore, PB, PAK
Shakarganj Ltd is principally engaged in the manufacturing, purchase, and sale of sugar, biofuel, and yarn (textile). The company operates through the following segments: Sugar, Biofuel, Farms, and Textiles. The majority of its revenue is generated from the Sugar segment. Geographically, the company generates maximum revenue from Pakistan, followed by the Netherlands, Italy, the United Kingdom, the United Arab Emirates, KSA-Damam, Afghanistan, Thailand, and Taiwan.

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