Dollex Agrotech Adjusts Quality Grade Amid Strong Sales Growth and Leverage Concerns

Dollex Agrotech, a microcap player in the fertilizers industry, has recently undergone a quality adjustment reflecting its financial performance metrics. The company has demonstrated notable sales growth over the past five years, achieving a rate of 32.40%. Additionally, its EBIT growth during the same period stands at 33.95%, indicating a solid operational performance.
In terms of financial stability, Dollex Agrotech maintains an EBIT to interest ratio of 3.28, suggesting a reasonable ability to cover interest expenses. However, the company has a debt to EBITDA ratio of 8.50 and a net debt to equity ratio of 1.89, which may raise concerns regarding leverage. The sales to capital employed ratio is reported at 0.98, while the tax ratio is at 21.05%.

When compared to its peers, Dollex Agrotech's performance appears relatively favorable. While some competitors like Khaitan Chemical and Indogulf Cropsci are positioned below average, others such as ARCL Organics are rated higher. This context highlights Dollex Agrotech's competitive standing within the industry, particularly as it navigates the challenges of the fertilizer market.