Andhra Paper's Q3 Financial Results Show Negative Performance, Receives 'Strong Sell' Rating

Andhra Paper, a smallcap company in the paper and paper products industry, recently declared its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financial report, Andhra Paper has seen a very negative performance in the quarter, with a score of -25, which has improved from -31 in the last 3 months. This indicates a decline in the company's financial health.

The profit before tax (PBT) has fallen by 75.72% year on year, standing at Rs 27.48 crore. The profit after tax (PAT) has also seen a decline of 58.4% year on year, with a value of Rs 41.72 crore. The net sales have also fallen by 10.32% year on year, with a value of Rs 432.28 crore. This shows a negative trend in the company's near term performance.

The company's non-operating income, which is 52.46% of the PBT, is a cause for concern as it indicates a high reliance on non-business activities. This may not be a sustainable business model in the long run.

In terms of liquidity, Andhra Paper's cash and cash equivalents have been at its lowest in the last six half-yearly periods, with a value of Rs 23.72 crore. The debtors turnover ratio has also been at its lowest in the last five half-yearly periods, indicating a slowdown in the company's pace of settling its debtors.

Moreover, the company's non-operating income has been at its highest in the last five quarters, with a value of Rs 30.33 crore. This increase in income from non-business activities may not be sustainable.

Overall, Andhra Paper's financial performance for the quarter ending September 2024 has been negative, with a 'Strong Sell' call by MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.