A.K.Capital Services Reports Flat Performance in Q2 2024, Debt-Equity Ratio at 3.04 Times

Nov 09 2024 05:01 PM IST
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A.K.Capital Services, a microcap finance company, reported a flat performance in the second quarter of fiscal year 2024-2025. However, the company's operating cash flow has been consistently growing over the past three years, indicating strong cash revenues. On the downside, PAT and net sales have decreased, and the debt-equity ratio is at its highest in five periods. Investors are advised to hold and monitor closely.

A.K.Capital Services, a microcap finance company, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, A.K.Capital Services has shown a flat performance in the second quarter of the fiscal year 2024-2025. However, there has been an improvement in the company's score from -3 to 1 in the last three months.

The company's operating cash flow has been consistently growing over the past three years, with the latest annual figure at Rs 266.73 crore. This indicates that the company has been able to generate higher cash revenues from its business operations. Additionally, A.K.Capital Services has also shown a strong short-term liquidity position with cash and cash equivalents at Rs 43.34 crore in the last six half-yearly periods.

On the other hand, the company's profit after tax (PAT) for the quarter has fallen by -13.8% compared to the average PAT of the previous four quarters. This trend is concerning for the near future. Similarly, the net sales for the quarter have also decreased by -7.2% compared to the average net sales of the previous four quarters.

Moreover, A.K.Capital Services' debt-equity ratio has been at its highest in the last five half-yearly periods, standing at 3.04 times. This indicates that the company is relying more on borrowing to fund its operations, which may lead to a stressed liquidity situation.

Overall, A.K.Capital Services has shown a mixed performance in the latest financial results, with some positive and negative trends. Investors are advised to hold their positions and monitor the company's future performance closely.
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