Allcargo Gati's Q2 financials show positive performance despite 'Strong Sell' call

Nov 09 2024 05:01 PM IST
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Allcargo Gati, a smallcap logistics company, has shown positive financial performance in the second quarter of FY24-25, with a strong operating cash flow and improved ability to manage interest payments. Despite a 'Strong Sell' call by MarketsMojo, the company's financials indicate a consistent growth in the past three years. Investors should conduct their own research before making any investment decisions.
Allcargo Gati, a smallcap logistics company, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

Despite this, Allcargo Gati has shown positive financial performance in the second quarter of the fiscal year 2024-2025. The company's score has fallen from 11 to 10 in the last three months, indicating a slight decline.

However, there are several factors that are working in favor of Allcargo Gati based on its September 2024 financials. The company has shown a strong operating cash flow annually, with the highest amount of Rs 72.59 crore and a consistent growth over the past three years. This indicates that the company has been able to generate higher cash revenues from its business operations.

In addition, Allcargo Gati has also shown improvement in its ability to manage interest payments, with the highest operating profit to interest ratio of 3.34 times in the last five quarters. This is a positive sign for the company's financial health.

Furthermore, the company's profit before tax (PBT) has also shown a positive trend in the near term, with the highest amount of Rs -5.87 crore in the last five quarters. Similarly, the profit after tax (PAT) has also shown a positive trend, with the highest amount of Rs 0.30 crore in the last five quarters.

Allcargo Gati's short-term liquidity has also improved, with the highest amount of cash and cash equivalents at Rs 186.49 crore in the last six half-yearly periods. Additionally, the company's debt-equity ratio has been consistently decreasing, with the lowest ratio of 0.30 times in the last five half-yearly periods.

Overall, Allcargo Gati's financial performance in the second quarter of FY24-25 has been positive, with several factors working in its favor. However, investors should take note of the 'Strong Sell' call given by MarketsMOJO and conduct their own research before making any investment decisions.
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