Aptus Value Housing Finance India shows strong sales and profit growth in Q2 2024, but concerns remain

Aptus Value Housing Finance India, a midcap company in the finance-housing industry, has recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is 'Hold'.

According to the financials, Aptus Value Housing Finance India has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 12 to 14 in the last three months.

The company's net sales for the quarter were the highest at Rs 421.39 crore and have been growing each quarter for the past five quarters. This indicates a very positive sales trend in the near term. Similarly, the operating profit (PBDIT) for the quarter was also the highest at Rs 353.35 crore and has been growing each quarter for the past five quarters, showing a positive trend in the near term.

The profit before tax less other income (PBT) for the quarter was also the highest at Rs 222.57 crore and has been growing each quarter for the past five quarters, indicating a very positive trend in the near term. The profit after tax (PAT) for the quarter was also the highest at Rs 181.97 crore and has been growing each quarter for the past five quarters, showing a very positive trend in the near term.

The company's earnings per share (EPS) for the quarter were the highest at Rs 3.64 in the last five quarters, indicating an increase in profitability and higher earnings for shareholders. The dividend payout ratio (DPR) for the company has also been the highest at 36.69% in the last five years, showing that the company is distributing a higher proportion of its profits as dividends.

However, there are some areas that are not working for Aptus Value Housing Finance India based on the September 2024 financials. The company's operating cash flow has been falling each year for the past three years, with the lowest being at Rs -1,355.68 crore. This indicates that the company's cash revenues from business operations are declining.

Additionally, the debt-equity ratio for the company has been the highest at 1.54 times in the last five half-yearly periods. This shows that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Overall, Aptus Value Housing Finance India has shown positive financial performance in the recent quarter, with a strong sales and profit trend. However, there are some concerns regarding the company's cash flow and debt levels. Investors are advised to hold their position in the stock, as recommended by MarketsMOJO.