Heads UP Ventures Limited — financial distress indicators
Financial-health summary
Heads UP Ventures Limited's reported numbers place it in the 'Watch' financial-health band (distress score 40/100). The main indicators are operations consume cash, ohlson o-score signals likely failure and cash runway under 24 months. Independently, the Ohlson accounting model puts its 1-year failure probability at 96%. In its favour: cash on hand covers all debt (net-cash balance sheet).
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.
Operating cash flow negative in 2 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 3.16 → model probability 96%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Cash covers ~13 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
1 severe and 0 moderate distress-related headlines in the last 6 months.
Headlines are corroborating evidence only; they are weighted lightly and never drive a flag alone.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- Revenue still growing (+1116% YoY).
- High insider/promoter ownership (34%) aligns management with survival.
📰 Recent news scan
- insolvencyHeads up for Lucid funded traders, the talk about Lucid bankruptcy is a completely different firm - investingLiveGoogle News · 2026-07-14
- Heads UP Ventures Ltd (NSE: HEADSUP) Refines Apparel Trading and Distribution Model - Kalkine IndiaGoogle News · 2026-10-06
- Heads Up Ventures closes trading window ahead of Q2FY27 results - scanx.tradeGoogle News · 2026-09-28
- Heads UP Ventures vs Nifty 50: Share Price Performance Compared - UnivestGoogle News · 2026-09-25
- Heads UP Ventures Ltd. Peer Comparison – Compare with Others - Value ResearchGoogle News · 2026-08-30
- SOX & MARTIN HEMI CHALLENGE MARKS 25 YEARS OF HEADS-UP HISTORY AT U.S. NATIONALS - Competition PlusGoogle News · 2026-08-19
⚖️ 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 Heads UP Ventures Limited's financial-health indicators show?
As of 2026-10-09, Heads UP Ventures Limited's public financial data places it in the 'Watch' band with a distress score of 40/100, driven by operations consume cash, ohlson o-score signals likely failure and cash runway under 24 months. 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 Heads UP Ventures Limited's financial distress score?
40/100 ('Watch'). Ohlson O-score 3.16 (model 1-year failure probability 96%).
What works in Heads UP Ventures Limited's favour?
Cash on hand covers all debt (net-cash balance sheet). Revenue still growing (+1116% YoY). High insider/promoter ownership (34%) 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.
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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.