How do I interpret profitability, return, and growth ratios in FYERS?
The Value section under Fundamentals on FYERS Web shows important financial ratios over several years. These help you understand a company’s profits, efficiency, and growth potential. Use this guide to read and interpret each metric shown on that screen.
How to access the Value section
- Go to your Watchlist and select a stock.
- Click on Fundamentals and choose Value.
- Use the yearly columns (e.g., Mar 2020 – Mar 2025). You may also see a Consolidated / Standalone toggle in the top right corner.
Profitability and margin metrics
These help assess how efficiently a company runs its business and turns revenue into profit.
- EPS (Earnings Per Share): Net profit per share. Rising EPS shows improving profitability; negative EPS means losses.
- CEPS (Cash Earnings Per Share): EPS adjusted for non-cash items like depreciation. Often more stable in asset-heavy companies.
- Book NAV/Share: Book value per share. Reflects the company’s net worth on a per-share basis.
- Tax Rate: Effective tax paid as a percentage of profits. Big changes may be due to deferred tax or one-time items.
- Core EBITDA Margin: Core operating profit as a percentage of revenue. Higher values show stronger operations.
- EBIT Margin: Operating profit after depreciation. Indicates operational efficiency.
- Pre-Tax Margin: Profit before tax as a percentage of revenue.
- PAT Margin: Profit after tax as a percentage of revenue. Shows the bottom-line margin.
- Cash Profit Margin: Cash profits as a percentage of revenue. Helps judge real cash-based profitability.
Return ratios
Return ratios show how efficiently the company uses its capital and assets to generate profits.
- ROA (Return on Assets): Net income as a percentage of total assets. Higher values mean better asset use.
- ROE (Return on Equity): Net income as a percentage of shareholders’ equity. Shows returns earned for equity holders.
- ROCE (Return on Capital Employed): Operating profit as a percentage of capital employed. Useful for capital-heavy businesses.
Growth metrics
These help you track whether the company is growing consistently across key performance areas.
- Net Sales Growth: Year-on-year revenue growth. Indicates demand and scale.
- Core EBITDA Growth: Growth in core operating earnings. Reflects underlying business momentum.
- EBIT Growth: Growth in operating profit after depreciation. Suggests cost control and business mix improvement.
- PAT Growth: Growth in net profit. Can be affected by interest, tax, and other adjustments.
- EPS Growth: Growth in earnings per share. Also influenced by share capital changes.
Trader’s takeaway: Do not rely on a single ratio. Check margins (profit quality), returns (capital efficiency), and growth (trajectory) across 3–5 years for a balanced view.
What if...
| Scenerio | Solution |
|---|
| Negative or volatile EPS / PAT Margin | Look for losses, one-offs, or business cycles in the Profit & Loss tab. |
| CEPS greater than EPS | Normal in sectors with high depreciation. Cash profits exceed accounting profits. |
| ROE is negative despite profits | Equity might be too low or negative. Check the Balance Sheet. |
| Tax rate changes sharply | Check for deferred tax effects or one-time tax items. Compare across years. |
Note: Financial data on FYERS is sourced from market data vendors and reflects company filings with exchanges. For audited confirmation, refer to the company’s official annual reports.
Last updated: 11 Sep 2025
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