Tilaknagar Industries Upgraded to Higher Quality Grade Amid Strong Financial Performance

Tilaknagar Industries, a small-cap player in the beverages sector, has recently undergone an evaluation revision, reflecting its solid performance metrics. The company has demonstrated robust sales growth over the past five years, achieving a rate of 25.01%. Additionally, its EBIT growth during the same period stands at an impressive 36.35%, indicating strong operational efficiency.
Financial stability is further highlighted by a favorable EBIT to interest ratio of 8.66, alongside a manageable debt to EBITDA ratio of 2.47 and a net debt to equity ratio of 1.09. The company's sales to capital employed ratio is recorded at 1.41, showcasing effective capital utilization. Notably, Tilaknagar maintains a tax ratio of 0.00%, which may contribute to its financial health.

In comparison to its peers, Tilaknagar Industries stands out with a higher return on equity (ROE) of 19.42% and a return on capital employed (ROCE) of 12.66%. While some competitors like Allied Blenders and G M Breweries are positioned at a lower quality level, Tilaknagar's performance metrics suggest a competitive edge in the beverages market. The company's institutional holding is at 23.26%, with a dividend payout ratio of 8.43%, reflecting a balanced approach to shareholder returns.