Aarti Surfactants' Financial Performance Declines in Q1 FY25, MarketsMOJO Issues 'Sell' Call

Despite being a microcap company in the chemicals industry, Aarti Surfactants has recently faced a decline in its financial performance for the quarter ending in June 2024. The company’s financial score has fallen from 4 to -14 in the last three months, indicating a negative trend.

According to the recently declared financial results for the quarter, the company’s Profit Before Tax (PBT) has decreased by 64.8% to Rs 2.82 crore, compared to the average PBT of the previous four quarters which was Rs 8.02 crore. Similarly, the Profit After Tax (PAT) has also fallen by 58.3% to Rs 2.22 crore, compared to the average PAT of Rs 5.33 crore in the previous four quarters.

The company’s ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters. Additionally, the Operating Profit (PBDIT) has also decreased to its lowest at Rs 9.63 crore in the last five quarters, indicating a negative trend in the near term.

The Operating Profit Margin has also decreased to its lowest at 6.72%, showing a decline in the company’s efficiency. The Earnings per Share (EPS) has also decreased to its lowest at Rs 2.62 in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

Based on these financial results, MarketsMOJO has given a ‘Sell’ call for Aarti Surfactants’ stock. It is important for investors to carefully consider these financial indicators before making any investment decisions.