Asit C Mehta Financial Services Ltd shows positive financial performance in Q3 2024.

Asit C Mehta Financial Services Ltd, a microcap IT software company, has recently declared its financial results for the quarter ending September 2024. The company has shown positive performance in this quarter, with a score of 11 out of 20, an improvement from the previous score of 8 in the last 3 months.

According to the financials, the company's net sales for the quarter were at Rs 14.81 crore, the highest in the last five quarters. This shows a positive trend in the company's sales performance in the near term. The net sales have also grown by 23.3% over the average net sales of the previous four quarters, which is a good sign for the company.

The operating profit (PBDIT) for the quarter was also at its highest in the last five quarters, at Rs 1.06 crore. This indicates a positive trend in the company's operating profit in the near term. The operating profit margin was also at its highest in the last five quarters, at 7.16%, showing an improvement in the company's efficiency.

The company's cash and cash equivalents for the half-yearly period were at its highest in the last six periods, at Rs 47.68 crore. This indicates an improvement in the company's short-term liquidity.

However, there are some areas that are not working in favor of Asit C Mehta Fin based on the September 2024 financials. The debt-equity ratio for the half-yearly period was at its highest in the last five periods, at 3.39 times. This shows that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Additionally, the non-operating income for the quarter was at its highest in the last five quarters, at Rs 1.55 crore. While this may seem like a positive, it is important to note that this income is from non-business activities and may not be sustainable in the long run.

In conclusion, Asit C Mehta Financial Services Ltd has shown positive financial performance in the quarter ending September 2024. However, there are some areas that need to be monitored closely, such as the debt-equity ratio and non-operating income, to ensure sustainable growth in the future. Based on these financials, MarketsMOJO has given a 'Strong Sell' call for the company's stock.