Bang Overseas Limited — financial distress indicators
Financial-health summary
Bang Overseas Limited's reported numbers place it in the 'Watch' financial-health band (distress score 38/100). The main indicators are market-implied default probability >20%, ohlson o-score signals likely failure and losses in 2 of the last 3 years. Independently, the Ohlson accounting model puts its 1-year failure probability at 58% and the market-implied (Merton) default probability is 30.6%. In its favour: strong current ratio (1.91).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Merton distance-to-default 0.51 σ → PD 31%.
Structural (Merton/KMV) model: equity is a call option on assets; low distance-to-default means assets are close to the default point.
O-score 0.33 → model probability 58%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Operating cash flow negative in 3 of the last 3 years. The company is profitable, so this likely reflects working-capital or loan-book growth.
A business that cannot fund itself from operations depends on external capital to survive.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Strong current ratio (1.91).
- Revenue still growing (+19% YoY).
- High insider/promoter ownership (75%) aligns management with survival.
📰 Recent news scan
- GLENN SETS PRO STOCK RECORD; LANGDON, BECKMAN & HERRERA QUALIFY NO. 1 AT TEXAS NHRA FALLNATIONALS PLUS RON CAPPS HAS GIANT EXPLOSION! - BangShift.comGoogle News · 2026-10-18
- Bang & Olufsen AS (CEUX:BOc) Stock Price, Trades & News - GuruFocusGoogle News · 2026-10-16
- Reporting of Manager’s transaction in Bang & Olufsen shares - Yahoo FinanceGoogle News · 2026-10-05
- COMMENTARY: Trading Day: AI euphoria back with a bang - ReutersGoogle News · 2026-09-21
- Li Bang Stock Plunges 23% After Hours: Here's What's Going On - Li Bang International (NASDAQ:LBGJ) - BenzingaGoogle News · 2026-07-30
- The Stock Market’s AI Trade Is Back With a Bang - Barron'sGoogle News · 2026-07-21
⚖️ Indian legal pathway — the IBC, 2016
How insolvency starts
- A financial creditor (§7), an operational creditor after a demand notice (§§8–9) or the company itself (§10) can apply to the NCLT once a default of at least ₹1 crore occurs (§4).
- On admission a moratorium (§14) stops suits and recovery; the board is suspended and an insolvency professional runs the company.
- The Committee of Creditors approves a resolution plan with 66% of voting share (§30(4)) within an outer limit of 330 days (§12); otherwise liquidation (§33) under the §53 waterfall — equity ranks last. Defaulting promoters are generally barred from bidding (§29A).
Earlier warning stages
- RBI's Prudential Framework for Resolution of Stressed Assets (7 June 2019): lenders must review a borrower within 30 days of default and implement a resolution plan, or provide more.
- Listed companies must disclose loan defaults to exchanges under SEBI (LODR); a rating downgrade to “D” is a public signal.
- Auditors must report going-concern uncertainty (SA 570 / Ind AS 1).
Frequently asked questions
What do Bang Overseas Limited's financial-health indicators show?
As of 2026-10-24, Bang Overseas Limited's public financial data places it in the 'Watch' band with a distress score of 38/100, driven by market-implied default probability >20%, ohlson o-score signals likely failure and losses in 2 of the last 3 years. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Bang Overseas Limited's financial distress score?
38/100 ('Watch'). Ohlson O-score 0.33 (model 1-year failure probability 58%). Merton distance-to-default 0.51 σ (model default probability 30.6%).
What works in Bang Overseas Limited's favour?
Strong current ratio (1.91). Revenue still growing (+19% YoY). High insider/promoter ownership (75%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
Under the IBC the Committee of Creditors controls the resolution; the §53 waterfall pays secured creditors and workers first and equity last. In most resolution plans existing shareholders are wiped out or left with a token stake, and the company may be delisted.
Other Consumer Discretionary companies with distress indicators
- Balkrishna Paper Mills Limited (BALKRISHNA)Very weak 100/100
- CLC Industries Limited (CLCIND)Very weak 100/100
- Flexituff Ventures International Limited (FLEXITUFF)Very weak 100/100
- Praxis Home Retail Limited (PRAXIS)Very weak 100/100
- SEL Manufacturing Company Limited (SELMC)Very weak 100/100
- Spencer's Retail Limited (SPENCERS)Very weak 100/100
All Consumer Discretionary companies with distress indicators →
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.