Hexa Tradex Faces Quality Grade Change Amidst Financial Health Concerns in NBFC Sector

Hexa Tradex, a small-cap player in the Non-Banking Financial Company (NBFC) sector, has recently undergone an evaluation revision that reflects its current financial standing. The company has demonstrated notable sales growth over the past five years, achieving a rate of 39.75%. However, its EBIT growth during the same period stands at a modest 12.78%.
In terms of financial health, Hexa Tradex shows a concerning average EBIT to interest ratio of -0.84, indicating challenges in covering interest expenses. The debt metrics reveal a debt to EBITDA ratio of 36.59, suggesting a significant leverage position, while the net debt to equity ratio is relatively low at 0.08. The company's tax ratio is notably high at 84.60%, which could impact net profitability.

When compared to its peers, Hexa Tradex's performance appears to lag, with several competitors maintaining average quality metrics. For instance, MSTC and D.P. Abhushan both hold average standings, indicating a more stable financial position relative to Hexa Tradex. This context highlights the competitive landscape within the NBFC sector, where financial metrics play a crucial role in determining market positioning.