Dredging Corporation of India Upgraded to Average Quality Grade Amid Growth Indicators

Dredging Corporation of India has recently undergone an evaluation adjustment, reflecting a shift in its quality grade from below average to average. This change is indicative of the company's evolving financial metrics and market position. Over the past five years, the company has demonstrated a sales growth rate of 11.41% and an impressive EBIT growth rate of 35.26%. However, the average EBIT to interest ratio stands at -0.96, suggesting challenges in covering interest expenses.
In terms of leverage, the debt to EBITDA ratio averages 1.71, while the net debt to equity ratio is relatively low at 0.34. The company's sales to capital employed ratio is recorded at 0.54, and the tax ratio is at 9.08%. Notably, the return on capital employed (ROCE) averages -1.45%, and the return on equity (ROE) is at 0.83%, indicating areas for improvement in profitability.

The stock's valuation grade has also been revised from fair to attractive, with a price-to-earnings ratio of -137.25 and an enterprise value to EBITDA ratio of 15.49. Despite recent performance challenges, the company has shown resilience in its long-term growth trajectory.

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