Suratwwala Business Group's Quality Grade Upgrade Reflects Strong Financial Performance Metrics

Jan 05 2024 03:36 PM IST
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Suratwwala Business Group, a microcap in construction and real estate, has shown significant sales growth of 31.30% and EBIT growth of 44.09% over five years. Its strong financial metrics, including a high EBIT to interest ratio and low debt levels, highlight its competitive position in the market.
Suratwwala Business Group, a microcap player in the construction and real estate sector, has recently undergone an evaluation revision that reflects its financial performance metrics. The company has demonstrated notable sales growth over the past five years, achieving a rate of 31.30%. Additionally, its EBIT growth during the same period stands at an impressive 44.09%, indicating strong operational efficiency.

The company's financial health is further underscored by its EBIT to interest ratio of 15.52, suggesting a robust ability to cover interest expenses. With a debt to EBITDA ratio of 0.19 and a net debt to equity ratio of 0.59, Suratwwala maintains a conservative leverage position, which is favorable in the current market environment.

In comparison to its peers, Suratwwala Business Group stands out with its strong return on capital employed (ROCE) of 38.44% and return on equity (ROE) of 54.73%. While some competitors in the construction sector are rated below average or average, Suratwwala's performance metrics highlight its competitive edge. The company's institutional holding remains low at 0.30%, indicating potential for growth in investor interest. Overall, the evaluation adjustment reflects the company's solid financial foundation amidst a challenging market landscape.
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