How about industries exposed to changes in regulations? Say an activist govt. could come in and ban cigarettes? Indian Pharma may find it hard to export due to reg pressure etc
My analysis is based on FY2022 financials of each company. As I explained in my post, the fragility score is dynamic and can change every year incase of any changes in financial position. But a low score indicates a company has low debt, adequate cash buffers, good cash flow from operations as of now. So, incase of regulatory changes, then cash flows will deteriorate and fragility score will automatically in crease in the subsequent year.
You have to be more specific as Chemicals has wide range of companies. There are companies with low and high fragility scores. May be that is the reason industry average score is not so great. Reliance Industries per se got a score of 5.18. You are right, it is very difficult to tag Reliance in any particular industry.
How about industries exposed to changes in regulations? Say an activist govt. could come in and ban cigarettes? Indian Pharma may find it hard to export due to reg pressure etc
My analysis is based on FY2022 financials of each company. As I explained in my post, the fragility score is dynamic and can change every year incase of any changes in financial position. But a low score indicates a company has low debt, adequate cash buffers, good cash flow from operations as of now. So, incase of regulatory changes, then cash flows will deteriorate and fragility score will automatically in crease in the subsequent year.
Surprised not to see Chemical or Specialty Chemical industry not featuring in the High fragile industry.
Also would Reliance feature in Diversified Mega industry (Low fragility) or Petro Chemical / Refinery/ Telecom/ FMCG retail .... ??
You have to be more specific as Chemicals has wide range of companies. There are companies with low and high fragility scores. May be that is the reason industry average score is not so great. Reliance Industries per se got a score of 5.18. You are right, it is very difficult to tag Reliance in any particular industry.