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1 | P A G E

SECTOR: CERAMIC PRODUCTS REPORTING DATE: 1ST JUNE, 2016

Euro Ceramics Ltd. www.eurovitrified.com

Euro Ceramics Ltd 1st June, 2016 TABLE 1 - MARKET DATA (STANDALONE) (As on 31st May, 2016)

NSE Code - EUROCERA NSE Market Price (₹) 2.95 NSE Market Cap. (₹ Cr.) 10.05

Sector - Ceramic Products Face Value (₹) 10.00 Equity (₹ Cr.) 33.74

52 week High/Low (₹) 8.25/2.30 Net worth (₹ Cr.) -173.86

Business Group - Indian Private TTM P/E N.A. Traded Volume (Shares) 22,105

Year of Incorporation - 2002 TTM P/BV N.A. Traded Volume (lacs) 0.65

Source - Capitaline

Corporate Office: COMPANY BACKGROUND

208, Sangam Arcade Vallabhbhai Euro Ceramics Ltd was incorporated as private limited Company under the name 'Euro

Ceramics Private Limited'' with certification of incorporation dated 16th April, 2002.

Subsequently the Company became a public limited Company on 16th November, 2004

under the name Euro Ceramics Ltd. The Company is engaged in the business of Vitrified

Ceramic Tiles and Aluminium Extruded Sections. After the devastating earthquake of 26th

January, 2001 in Kutch Region of Gujarat, the Company decided to establish

manufacturing facilities for Vitrified Ceramic Tiles and Aluminium Extruded Sections at

Bhachau, Kutch. The major Plant & Machinery required for manufacturing Vitrified

Ceramic Tiles were imported from SACMI, Italy. The first line for manufacturing Vitrified

Ceramic Tiles with an installed capacity of 35,880 MTPA commenced operations in

October 2003 along with manufacturing of Aluminium Extruded Sections with installed

capacity of 1,800 MTPA. During July 2004, considering the growing demand for the

products, the Company decided to install a second line for manufacturing Vitrified Ceramic

Tiles with an installed capacity of 44,091 MTPA, for which, once again we entered into a

contract for supply of major Plant & Machinery with SACMI, Italy. The second line for

manufacturing Vitrified Ceramic Tiles commenced operations in December 2005. The

manufacturing facility for Vitrified Ceramic Tiles is ISO: 9001 certified. Vitrified Ceramic

Tiles have also got the approval from reputed technical Institutions like Veermata Jijabai

Technological Institute (VJTI), Mumbai and Applied Consumer Services Inc., Finland, U.S.A.

During February 2005, the Company started operations of Jewellery Division. In June 2005,

Joint Director General of Foreign Trade, Government of India, accredited the Company as

One Star Export House. During November 2005, the Company discontinued the operations

of Jewellery Division. On December 30, 2005, Euro Merchandise (India) Limited, became

the subsidiary, which is engaged into business of trading of wall and floor tiles, which

include varieties like ceramic, glazed porcelain and rustic tiles. During March 2006, the

Company commenced a 10 MW lignite based captive power plant and in August 2006, the

Company also commenced a Gasifier for generating gas in order to reduce fuel costs and

to achieve self Sufficiency for gas.

Road, Station Road Vile Parle (W),

Mumbai – 400 056, Maharashtra

Company Website:

www.eurovitrified.com

TABLE 2 - PRICE PERFORMANCE

31st May,

2016

29th May,

2015

30th May,

2014

% Change CAGR for 2

years 2016 vs 2015 2015 vs 2014

Price (₹) 2.95 5.00 6.05 -41.00% -17.36% -30.17%

Trading Volume (Shares)

(yearly avg.) 60,752 4,504 1,595 1248.69% 182.42% -

NSE Market Cap. (in ₹ Cr.) 9.95 16.87 20.41 -41.02% -17.34% -30.18%

Source - Money Control

http://www.eurovitrified.com/




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TABLE 3 - FINANCIALS

(₹ Cr.) 2015 2014 2013 % Change CAGR for

2 years 2015 vs 2014 2014 vs 2013

Net Worth -161.07 -39.69 -17.31 N.A. N.A. N.A.

Current Assets 96.28 131.73 140.13 -26.91% -5.99% -17.11%

Non-Current Assets 324.16 413.90 450.94 -21.68% -8.21% -15.21%

Total Assets 420.45 545.63 591.06 -22.94% -7.69% -15.66%

Investments 58.67 94.37 95.90 -37.83% -1.60% -21.78%

Finance Cost 0.70 1.64 49.89 -57.32% -96.71% -88.15%

Long Term Liabilities 47.46 48.39 387.54 -1.92% -87.51% -65.01%

Current Liabilities 534.06 536.93 220.83 -0.53% 143.14% 55.51%

Turnover 49.71 76.63 88.61 -35.13% -13.52% -25.10%

Profit After Tax (PAT, ₹ Cr.) -62.04 -34.98 -107.00 N.A. N.A. N.A.

EPS (₹) -18.00 -13.00 -34.00 N.A. N.A. N.A.

Source - Money Control/Annual Report

Discussion as per Company:

During the FY 2014-15 the revenue were generated from Sanitaryware and Marble Division of the Company. The Vitrified Tiles

and Aluminum Section plants were non-operative during the year due to shortages of working Capital. There was no business

from Realty Division.

Revenue: Net sales during the financial year 2014-15 was ` 49.71 crores against the previous year’s net sales of ` 76.63 crores,

showing decrease by ` 26.92 crores on account of low off take of Marble. 97% business of the Company is through domestic

market during the year, which is almost in the same ratio of previous year.

Finance Cost: The Company’s finance cost for the financial year 2014-15 was ` 0.70 crores, mainly consist of interest on some of

the borrowings, interest on late payment of statutory dues, bank charges etc.

Investment: Investment as at 31st March, 2015 is reduced by ` 1.44 crores due to amount written off and provision made for

permanent diminution in the value of investment made in Subsidiaries.

Current Assets & Current Liabilities: Current Assets of the Company as on 31st March, 2015 was ` 96.28 crores reduced by `

35.45 crores, mainly on account of provision made for diminution in the value of the short term loans and advances made to

partnership firm. Current Liabilities of the Company as on 31st March, 2015 was ` 534.06 crores as against ` 536.93 crores as on

31st March, 2014, showing decrease of ` 2.87 crores on account of trade payable and other current liabilities.

Long Term Borrowings: The long term borrowings is reduced in absolute number by ` 0.93 crores as on 31st March, 2015 mainly

on account of repayment of some of the deposits and loans.




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AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The Auditors have raised following qualifications in the Annual Report for FY 2014-15

Status of the Audit Qualification(s) and Management Response:

I. The financial statement have been prepared on a “going concern” basis, Inspite the fact that the Company's

financial facilities/arrangements have expired and the same are overdue for repayment and the net worth of the

Company fully eroded and the lenders and creditors have initiated legal proceedings against the Company for

recovery.

The Directors would like to state that the Company is operational and Manufacturing Marble and Sanitaryware

Products and employed more than 200 manpower. The Company is also making serious efforts in negotiating with

the banks and resolving the issues with banks. The management has taken and been taking all diligent steps

under legal advice, to defend the Company in all the litigation. Considering the ample opportunities in the market

and growth drivers for the industry per say, your Directors are optimistic about the turnaround of the Company

with the infusion of the long term funds and with support of the lenders. The Company can derive a

comprehensive package under BIFR for the secured and unsecured lenders with potential future earning plans,

for resolution of its debts.

II. The Company has not provided for interest on financing facilities amounting to ₹87.58 crores for the year ending

March 31, 2015. Had the same been provided, the loss for the year ending March 31, 2015, would have increased

by ₹ 87.58 crores. The corresponding liabilities would also have increased by ₹87.58 crores as at March 31, 2015.

The Company on the basis of registration filed u/s. 15(1) of the Sick Industrial Companies (Special Provisions) Act,

1985, before the Hon'ble Board for Industrial & Financial Reconstruction, and the hearings for which are in

process for determination of sickness and on the basis of negotiation with the lenders for reduction in interest,

rephasement in terms of borrowings etc., has not provided for interest to the tune of ₹ 87.58 crores, (calculated

based on last sanction letters in hand) on financing facilities, for the year ending March 31, 2015.

III. The Company has not provided for impairment or diminishing value of its assets/investment as per 'Accounting

Standard 28 – Accounting for Impairment of Assets' as notified under the Companies (Accounting Standards)

Rules, 2006 read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs

in respect of Section 133 of the Companies Act, 2013. The effect of such Impairment or diminishing value has not

been quantified by the management and hence the same is not ascertainable.

The Company has made the provisions for diminution in the value of its investments/assets wherever required.

Management has a policy to maintain the assets and keep them in working condition, so that its value does not

get affected in long run. The management is optimistic about realizing the value of its Assets / Investments

nearest to its carrying value, and there is no further diminution in the value of its assets/investment other than

depreciation / amortization provided for.

IV. There has been delay in transferring unclaimed dividend amounting to ₹25,303/- pertaining to financial year

2006- 07 into the Investor Education and Protection Fund, by the Company during the year ended March 31,

2015.

The management would like to state that the delay in transferring the amounts to the Investor Education and

Protection Fund was unintentional and due to oversight.

V. In respect of loans, secured or unsecured, granted by the Company to companies, firms or other parties covered

in the register maintained under section 189 of the Act, here are no stipulations made regarding repayment of

principal amount and interest. Hence we are unable to comment as to regularity of repayments of principal and

interest amount.

The directors would like to state that the Loans and Advances are given in the normal course of business to a firm

where your Company is a partner with majority share.

VI. The Company has accumulated losses at the end of the financial year and at the immediately preceding financial

year and the Company has defaulted in repayment of loans and interest to the banks.

The directors would like to state that the loss is mainly on account of Depreciation and provisions made for

diminution in the value of the investment/ assets. However, the Company was able to generate marginal cash

profit of ` 2.31 crores during the year under review. The Company had working capital shortages during the year


https://www1.nseindia.com/annual_reports/AR_8029_EUROCERA_2014_2015_08092015104856.zip



4 | P A G E



and was unable to run all the plants. Further the plants which were operational during the year were also run at

lower capacity due to liquidity crunch, despite of the demand of the products in the market. Due to inadequate

cashflows from the operations of the Company, there were defaults in the repayment of the loans and interest to

the Banks. However, the management is hopeful with the changing economic scenario, of arriving at a

comprehensive business restructuring along with the debt realignment proposal with the lenders under BIFR.

VII. The Company has given the guarantee for loans taken by its subsidiary from bank. The terms and conditions of

the same are not prejudicial to the interest of the Company. The said subsidiary has been continuously incurring

losses and its net worth has been fully eroded and there is substantial doubt whether the said subsidiary would

be able to repay its liabilities or realize its assets.

The directors would like to state that the management of the subsidiary Company is hopeful of reviving its

business with the changing economic scenario and is negotiating with the lender for amicable settlement of its

dues.

VIII. No provision for depletion in the value of the investment and loans and advances made/given by the Company to

its wholly owned subsidiary company M/s. Euro Merchandise (India) Ltd.

The directors would like to state that the said investment is strategic and long term in nature. The management is

hopeful of turning around of business of the subsidiary company and recovery of the loans and advances given to

the subsidiary. Hence in the opinion of the management, no provision is necessary for the depletion in the value

of the investment.

IX. All the directors are disqualified as on March 31, 2014 from being appointed as a Director in terms of clause (g) of

sub-section (1) of section 274 of the Act.

The directors would like to state that disqualification was on account of the default in repayment of deposit and

interest there on due to liquidity crisis in the Company.

X. Non-compliance in respect of the deposits accepted within the meaning of section 58Aof the Companies Act,

1956.

Due to liquidity crunch and urgent requirements of working capital, the Company has paid higher interest rate

then the prescribed rate under the Companies (Acceptance of Deposits) Rules, 1975 to some of the depositors.

The Company has implemented the Corporate Debt Restructuring Scheme during the previous year but the

operations of the Company are under stress due to various internal and external factors including liquidity crunch,

adverse market conditions, economic slowdown and fixed cost burden due to low capacity utilization. Under such

situation, the Company could not maintain the liquid asset ratio as required under the said rules.

XI. Accumulated losses, cash loss during the year, erosion of net worth and default in payment to banks for

instalment and interest dues.

The Company was passing through severe liquidity crunch during the year. The capacity utilization in all the

divisions was very low due to non-availability of working capital, delay in implementation of CDR package, delay in

release of additional working capital by banks, adverse market conditions and price competition. The cost of

production was also high due to low capacity utilization, increasing fuel prices and unabsorbed fixed cost. In the

course of time the Company incurred cash losses and there has been default in repayment of instalments and

interest dues to banks. The Directors of the Company are hopeful of turnaround of the business of the Company

and to rectify all above in the years to come.”

Response Comment

Frequency of Qualifications - The Auditors have raised qualifications

since FY 2013-13

Have the Auditors made any adverse remark in last 3 years? No -

Are the material accounts audited by the Principal Auditors? Yes -

Do the financial statements include material unaudited financial

statements? No -




5 | P A G E



TABLE 4: BOARD PROFILE (As on 31st March, 2015)

Regulatory Norms Company

% of Independent Directors on the Board 50% 67%

% of Promoter Directors on the Board - 33%

Number of Women Directors on the Board Atleast 1 1

Classification of Chairman of the Board -

Executive Promoter

Director

Is the post of Chairman and MD/CEO held by the same person? - Yes

Average attendance of Directors in the Board meetings (%) - 100%

Source - Money Control/Annual Report

Composition of Board: As per Regulation 17(i)(b) of the Listing Regulations, 2015, the Company should have at least 50%

Independent Directors as the Chairman of the Board is an Executive Promoter Director. The Company as on 31st march, 2015

has 67% of Independent Directors on the Board and hence, it meets the regulatory requirements.

Board Diversity: The Company has 6 directors out of which 5 are male and 1 is female.

Holding of position of MD/ CEO & Chairman by same person: The Company has appointed Mr. Nenshi L. Shah as the Chairman

and Managing Director of the Company. Appointment of a single person as the Chairman and Managing Director of the

Company is not a good governance practice as this may lead to concentration of power in a single person.

TABLE 5 - FINANCIAL RATIOS

Ratios 2015 2014 2013 % Change

2015 vs 2014 2014 vs 2013

Turn

ove

r

Rat

ios

Inventory Turnover 1.55 2.39 2.21 -35.19% 8.06%

Debtors Turnover 3.79 5.18 4.35 -26.87% 19.31%

Fixed asset Turnover 0.15 0.19 0.20 -17.17% -5.78%

Current Asset Turnover 0.52 0.58 0.63 -11.24% -8.01%

Ret

urn

Rat

ios Operating Profit Margin -53.33% -45.67% -120.75% N.A. N.A.

Net Profit Margin -124.80% -45.65% -120.75% N.A. N.A.

Return on Assets (ROA) -14.76% -6.41% -18.10% N.A. N.A.

Return on Equity (ROE) N.A. N.A. N.A. N.A. N.A.

Return on Capital Employed (ROCE) N.A. N.A. N.A. N.A. N.A.

Liq

uid

ity

Rat

ios

Current Ratio 0.18 0.25 0.63 -26.52% -61.34%

Quick Ratio 0.12 0.19 0.45 -35.25% -59.04%

Cash Ratio 0.10 0.16 0.36 -39.50% -56.18%

Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.

Solv

ency

Rat

ios Debt to equity ratio N.A. N.A. N.A. N.A. N.A.

Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.

Trad

ing

Rat

ios

Market Cap / Sales 0.22 0.14 0.12 54.15% 15.63%

Market Cap/ Net Worth N.A. N.A. N.A. N.A. N.A.

Market Cap/PAT N.A. N.A. N.A. N.A. N.A.

Market Cap/EBITDA 5.41 N.A. N.A. N.A. N.A.

Trading Volume (shares) (avg. of 1

year) 53,844 4,559 1,323 1,080.95% 244.63%

Trading Volume (shares) (high in 1

year) 21,19,672 59,459 9,784 3,464.93% 507.72%

Trading Volume (shares) (low in 1

year) 3.00 1.00 3.00 200.00% -66.67%

Ratio - High/low trading volume 7,06,557 59,459 3,261 1,088.31% 1,723.15%

Ratio - High/average trading volume 39.37 13.04 7.40 201.87% 76.34%

Source - Money Control




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TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS

Mar' 2016 Mar' 2015 Mar' 2014 Comments

Shar

eho

ldin

g

Promoter shareholding 10.50% 22.24% 22.33% The promoter shareholding decreased

from 22.33% in Mar’ 2014 to 10.50% in

Mar’ 2016 due to invocation of pledged

shares. The shareholding of public

institution decreased from 30.11% in Mar’

2014 to 13.91% in Mar’2016 and that of

public others increased from 47.56% in

Mar’ 2014 to 75.59% in Mar’2016. The

promoters have pledged 99.99% of their

shareholding and 10.50% of Total

shareholding.

Public - Institutional shareholding 13.91% 29.47% 30.11%

Public - Others shareholding 75.59% 48.28% 47.56%

Non Promoter Non Public

Shareholding - - -

TABLE 6 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters The Promoters of the Company have sold their shares in the secondary market in last two

years.

Preferential issue to promoters No preferential issue of shares was made to the promoters in last three years

Preferential issue to others

During the FY 2013-14 the Company has issued and allotted 51,59,705 Equity Shares of `

10/- each at a price of ` 24.42/- per share (including premium of ` 14.42/- per share)

upon conversion of even number of Compulsorily Convertible Debentures which were

issued as per the terms of Letter of Approval (LOA) issued by Corporate Debt

Restructuring (CDR) cell, dated 29th October, 2011 on preferential basis.

GDRs issued by the Company The Company did not issue any GDRs in last three years

Issue of ESOPs/Issue of shares

other than Preferential allotment The Company does not have any ESOP Scheme.

Source - Annual Report




7 | P A G E



Glossary

Equity: The equity shares capital of the Company

Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders’ funds of the Company

Turnover: The revenue earned from the operations of the Company

EPS: Earning Per Share is net profit earned by the Company per share

𝐸𝑃𝑆 =Profit After Tax

Number of outstanding shares

P/E ratio: It is the ratio of the Company’s share price to earnings per share of the Company

𝑃/𝐸 𝑟𝑎𝑡𝑖𝑜 =Price of each share

Earnings per share

Current Assets: Cash and other assets that are expected to be converted to cash in one year

Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,

buildings, and equipment

Total Assets: Current Assets + Fixed Assets

Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the

future.

Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges

incurred during the year in relation to borrowed money.

Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.

Current Liabilities: A company's debts or obligations that are due within one year.

Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced over

a period.

𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Inventory

Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business

can turn its accounts receivable into cash during a period

𝐷𝑒𝑏𝑡𝑜𝑟𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Accounts recievables

Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Fixed Assets

Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Current Assets




8 | P A G E



Operating Profit Margin: Operating margin is a measurement of what proportion of a Company’s revenue is left over after

paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company’s operating

income (also known as “operating profit”) during a given period by its sales during the same period.

𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Operating profit

Sales Turnover

Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Net profit

Sales Turnover

Return on Assets: ROA tells you what earnings were generated from invested capital (assets)

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =Net profit

Total Assets

Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders’

equity.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 =Net profit

Net worth

Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability

and the efficiency with which its capital is employed.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 =Net profit

Total Debt + Equity share capital

Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts

over the next 12 months. It compares a firm's current assets to its current liabilities.

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 =Current Assets

Current Liabilities

Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories

Current Liabilities

Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories − Account Recievables

Current Liabilities

Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates a

Company's effectiveness in using its working capital.

𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Current Assets − Current Liabilities

Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of

shareholders' equity and debt used to finance a company's assets.

𝐷𝑒𝑏𝑡 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 𝑟𝑎𝑡𝑖𝑜 =𝑆ℎ𝑜𝑟𝑡 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡 + 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡

𝑁𝑒𝑡 𝑊𝑜𝑟𝑡ℎ

Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a

Company can pay interest on outstanding debt.

𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐶𝑜𝑣𝑒𝑟𝑎𝑔𝑒 𝑅𝑎𝑡𝑖𝑜 =𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐵𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑇𝑎𝑥

𝐹𝑖𝑛𝑎𝑛𝑐𝑒 𝐶𝑜𝑠𝑡


http://www.investopedia.com/terms/i/invested-capital.asp

http://www.investopedia.com/articles/stocks/05/04405.asp



9 | P A G E



Market Cap/Sales ratio: Market Cap/sales ratio, Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated

by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-share stock price by

the per-share revenue.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑆𝑎𝑙𝑒𝑠 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company’s market cap to net worth.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ

Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company’s market cap to net profit.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑃𝐴𝑇 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡

Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company’s market cap to EBITDA.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝐸𝐵𝐼𝑇𝐷𝐴 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝐸𝐵𝐼𝑇𝐷𝐴

Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year

Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year

Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year


https://en.wikipedia.org/wiki/Stock

https://en.wikipedia.org/wiki/Market_cap

https://en.wikipedia.org/wiki/Stock



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