Anupam Rasayan's Q1 FY25 Financial Results Show Significant Decline, Receives 'Sell' Rating

Anupam Rasayan India, a midcap company in the pesticides and agrochem industry, recently declared its financial results for the quarter ending March 2024. However, the company’s performance has been deemed as very negative by MarketsMOJO, who have given a ‘Sell’ call for its stock.

According to the financials, Anupam Rasayan’s net sales for the quarter have fallen by 31.1% compared to the average net sales of the previous four quarters. This indicates a very negative trend in the company’s sales. Similarly, the profit before tax (PBT) has also seen a significant decline of 80.8% compared to the average PBT of the previous four quarters. The profit after tax (PAT) has also fallen by 87.8%, showing a negative trend in the company’s profitability.

The company’s ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters. This is further supported by the fact that the interest cost has grown by 25.78% over the preceding nine months period, indicating increased borrowings.

Anupam Rasayan’s sales and operating profit have also been at their lowest in the last five quarters, with a negative trend in both. The operating profit margin has also decreased to its lowest at 20.92%, indicating a decline in the company’s efficiency.

The company’s non-operating income is also high, accounting for 37.42% of the profit before tax. This suggests that the company’s income from non-business activities is not sustainable in the long run.

Furthermore, the earnings per share (EPS) have also decreased to its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. The debtors turnover ratio, which measures the pace of settling debtors, has also slowed down in the last five half-yearly periods.

Overall, Anupam Rasayan’s financial performance for the quarter ending March 2024 has been deemed as very negative, with declining sales, profitability, and efficiency. This has led to a ‘Sell’ call for its stock by MarketsMOJO.