Acrow India Faces Quality Grade Adjustment Amid Mixed Financial Performance Indicators

Acrow India, operating in the Iron & Steel Products sector, has recently undergone a quality adjustment that reflects its current financial standing. The company has demonstrated notable sales growth over the past five years, achieving a rate of 33.50%. However, its EBIT growth during the same period has been modest at 0.57%.
Financial metrics reveal that Acrow India has a negative EBIT to interest ratio of -1.63, indicating challenges in covering interest expenses. The company maintains a favorable debt profile, with negative net debt and a net debt to equity ratio of 0.00, suggesting a lack of leverage. However, its return on capital employed (ROCE) stands at -13.03%, and return on equity (ROE) is at 0.80%, which may raise concerns about profitability.

In comparison to its peers, Acrow India’s performance appears mixed. While it has outperformed some competitors in terms of sales growth, its overall financial health, as indicated by key metrics, positions it below average relative to others in the industry. This evaluation revision highlights the need for Acrow India to address its profitability and operational efficiency to enhance its market position.