01
We have used 3 dimensions - cash resilience, profitability and sector impact to form the Avalon Pandemic Test designed to assess the impact of COVID-19 on India Inc. (sample of ~1500 companies) basis trailing twelve-month financials.
02
~70% of the companies have <1Q of cash to cover their Fixed expenses. However, many of these companies have low D/E and high interest cover and can raise capital. Thus, ~50% of India Inc has the cash resilience to weather the impact of COVID-19.
03
~20% of companies have high profitability defined as EBIDTA > 15% and ROCE >18%.