Dhruv Consultancy Services Downgraded Amid Mixed Financial Performance and Declining Stock Value

Dhruv Consultancy Services, operating in the Commercial Services & Supplies sector, has recently undergone an evaluation adjustment that reflects a shift in its quality grade from average to below average. This change is attributed to various underlying financial metrics that indicate a mixed performance landscape.
Over the past five years, the company has experienced a sales growth rate of 11.17%, while its EBIT growth has been notably lower at 0.83%. The average EBIT to interest ratio stands at 4.03, suggesting a moderate ability to cover interest expenses. Additionally, the debt to EBITDA ratio is recorded at 1.47, indicating a manageable level of debt relative to earnings. The net debt to equity ratio is relatively low at 0.21, which may suggest a conservative capital structure.

In terms of valuation, Dhruv Consultancy Services is currently classified as expensive, with a PE ratio of 15.87 and a price to book value of 1.17. The company’s return on equity (ROE) averages at 6.43%, which is below the industry standard, while the return on capital employed (ROCE) is at 8.29%.

The stock has shown a significant decline over the past year, with a return of -57.15%, contrasting with a modest gain in the broader market. Despite these challenges, there has been an increase in institutional holdings, which now account for 5% of the company, reflecting a growing interest from larger investors.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.