Anjani Synthetics' Q4 2024 Financial Results Show Mixed Performance, MarketsMOJO Gives 'Sell' Call

Anjani Synthetics, a microcap textile company, recently declared its financial results for the quarter ending March 2024. According to the report, the company's performance has remained flat compared to the previous quarter, with a score of 0, an improvement from -1 in the last 3 months.

The company's profit after tax (PAT) for the quarter was the highest in the last five quarters at Rs 1.69 crore, showing a positive trend in the near term. Similarly, the earnings per share (EPS) for the quarter were also the highest in the last five quarters at Rs 1.15, indicating an increase in profitability and higher earnings for shareholders.

However, there are some areas of concern for Anjani Synthetics based on its financials for March 2024. The net sales for the quarter were at Rs 63.93 crore, a decrease of -21.52% year on year (YoY), and the near term sales trend is negative. The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio at its lowest in the last five quarters.

The operating profit (PBDIT) for the quarter was also the lowest in the last five quarters at Rs 1.70 crore, and the near term trend is negative. The operating profit margin was also at its lowest in the last five quarters at 2.66%, indicating a decline in the company's efficiency. Additionally, the profit before tax less other income (PBT) for the quarter was at its lowest in the last five quarters at Rs -0.04 crore, and the near term trend is negative.

It is also worth noting that the non-operating income for the quarter was 102.86% of the profit before tax (PBT), which suggests that the company's income from non-business activities is high, which may not be a sustainable business model.

Based on these financial results, MarketsMOJO has given a 'Sell' call for Anjani Synthetics' stock. Investors should carefully consider these factors before making any investment decisions.