Andhra Petrochem's Q1 financials show positive growth, but concerns remain for investors

Andhra Petrochem, a microcap company in the petrochemical industry, has recently announced its financial results for the quarter ending June 2024. The stock call by MarketsMOJO for the company is 'Hold'.

According to the financials, Andhra Petrochem has shown positive performance in the quarter, with a score of 7 compared to 34 in the previous 3 months. The company's Profit After Tax (PAT) for the half-yearly period has grown by 731.11% year on year, indicating a very positive trend. The PAT for the half-yearly period is also higher at Rs 59.84 crore compared to the preceding 12 months period, where it was Rs 25.49 crore. This shows that the company has already surpassed its PAT for the previous 12 months in just half a year.

The company's Cash and Cash Equivalents for the half-yearly period are at its highest in the last six periods, indicating an improvement in short-term liquidity. The Debt-Equity Ratio for the half-yearly period is also at its lowest in the last five periods, showing that the company has been reducing its borrowing in comparison to its equity capital.

However, there are some areas where Andhra Petrochem's financials have not been as positive. The Net Sales for the quarter have fallen by -34.3% compared to the average of the previous four quarters. The Profit Before Tax less Other Income (PBT) for the quarter has also fallen by -10.7% compared to the average of the previous four quarters. These indicate a negative trend in the near term for the company's sales and PBT.

Moreover, the Net Sales for the quarter are at its lowest in the last five quarters, and the Non-Operating Income is at its highest in the last five quarters. This suggests that the company's income from non-business activities is high, which may not be a sustainable business model.

Overall, Andhra Petrochem has shown positive financial performance in the quarter ending June 2024, with some areas of concern. Investors are advised to hold their stocks and keep an eye on the company's future financial results.