Madras Fertilizers Experiences Quality Grade Revision Amidst Strong Financial Metrics

Madras Fertilizers has recently undergone an evaluation revision, reflecting a shift in its quality assessment. The company, operating within the small-cap fertilizers sector, has demonstrated notable financial metrics that contribute to this adjustment. Over the past five years, Madras Fertilizers has achieved a sales growth rate of 10.30% and an EBIT growth rate of 16.15%.
In terms of financial stability, the company's EBIT to interest ratio stands at 2.26, while its debt to EBITDA ratio is recorded at 10.13, indicating a manageable level of debt relative to earnings. Furthermore, the net debt to equity ratio is at 0.00%, suggesting a strong equity position. The sales to capital employed ratio is 2.22, and the tax ratio is 28.29%.

When compared to its peers, Madras Fertilizers holds an average quality assessment, while competitors such as Chambal Fertilizers and Deepak Fertilizers are rated higher. The company's return metrics show a significant performance over the long term, with a 5-year return of 378.05%, outpacing the broader market. However, year-to-date returns reflect a decline of 14.97%, contrasting with the Sensex's positive performance. This evaluation revision highlights the company's current standing amidst its industry peers and its financial resilience.