Aavas Financiers Reports Mixed Performance in Q2 FY2024-25, Stock Receives 'Hold' Call.

Aavas Financiers, a midcap finance company specializing in housing loans, 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, Aavas Financiers has shown a flat performance in the second quarter of the fiscal year 2024-25. However, there has been an improvement in the company's overall score, which has increased from -1 to 3 in the last three months.

The company's net sales for the quarter were the highest in the last five quarters, reaching Rs 579.16 crore. This indicates a positive trend in the company's sales performance in the near term. Aavas Financiers also saw its operating profit (PBDIT) reach a high of Rs 446.51 crore, with a positive trend in the near term. The company's operating profit margin has also improved, reaching a high of 77.10%.

In terms of profitability, Aavas Financiers has shown positive trends in its profit before tax (PBT) and profit after tax (PAT). The PBT for the quarter was the highest in the last five quarters at Rs 188.73 crore, while the PAT reached Rs 147.91 crore. The company's earnings per share (EPS) also saw an increase, reaching a high of Rs 18.69.

However, the company's operating cash flow has been a cause for concern. It has been falling each year in the last three years, with the lowest being Rs -1,986.59 crore in the last fiscal year. This indicates a decline in the company's cash revenues from business operations.

Overall, Aavas Financiers has shown a mixed performance in the second quarter of the fiscal year 2024-25. While there are positive trends in terms of sales and profitability, the company needs to address the decline in its operating cash flow. Investors are advised to hold their positions in the company's stock, as recommended by MarketsMOJO.