Ashapuri Gold Ornament reports strong financial performance in Q2 FY25

Ashapuri Gold Ornament, a microcap company in the diamond and gold jewellery industry, has recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, Ashapuri Gold has shown a very positive performance in the quarter, with a score of 27, an improvement from 26 in the previous 3 months. The company’s net sales for the quarter were at Rs 86.89 crore, showing a growth of 83.6% compared to the average net sales of the previous four quarters. This indicates a very positive sales trend in the near term.

The operating profit (PBDIT) for the quarter was at its highest at Rs 4.96 crore and has shown growth in each of the last five quarters. The same trend can be seen in the profit before tax (PBT) less other income, which was also at its highest at Rs 4.56 crore for the quarter. This shows a very positive trend in the near term for both operating profit and PBT.

In terms of sales, Ashapuri Gold has shown its highest net sales in the last five quarters at Rs 86.89 crore, indicating a positive sales trend in the near term. The profit after tax (PAT) for the quarter was also at its highest at Rs 3.45 crore, showing a positive trend in the near term.

However, there are some areas that need improvement for Ashapuri Gold. The company’s cash and cash equivalents for the half-yearly period were at its lowest at Rs 0.06 crore, indicating a deteriorating short-term liquidity. The debtors turnover ratio for the half-yearly period was also at its lowest at 4.65 times, showing a slower pace in settling its debtors.

Overall, Ashapuri Gold has shown a very positive financial performance in the quarter ending September 2024. However, there are some areas that need improvement for the company to maintain its growth in the long term. Investors are advised to hold their stock in Ashapuri Gold for now, as recommended by MarketsMOJO.