Axel Polymers Reports Strong Financial Growth

Axel Polymers, a microcap company in the plastic products industry, has recently announced its financial results for the quarter ended September 2023. The company's net sales for the quarter have shown a significant growth of 19.80% compared to the previous quarter, which had a decline of -5.04%. The standalone net profit for the quarter has also seen a decrease of -19.35% compared to the previous quarter's growth of 51.22%.
The operating profit (PBDIT) excluding other income has also shown a decline of -9.15% compared to the previous quarter's decline of -19.05%. However, the interest expenses have decreased by -2.50% compared to the previous quarter's decline of -6.98%. The operating profit margin (excluding other income) has also fallen from the previous quarter.

Despite these declines, Axel Polymers has shown positive financial performance in the quarter ended September 2023. The company's score has improved from 8 to 14 in the last 3 months.

The company's net sales for the quarter have grown by 44.15% year on year, with a very positive near-term sales trend. The inventory turnover ratio for the half-yearly period is at its highest at 2.83 times, showing consistent growth in the last five half-yearly periods. This indicates that the company has been able to sell its inventory faster.

Moreover, the net sales for the quarter have also reached its highest at Rs 30.92 crore in the last five quarters, with a positive near-term sales trend. The profit after tax (PAT) for the nine-month period is also higher at Rs 1.53 crore compared to the previous 12-month period of Rs 1.03 crore. This shows that the company has already surpassed its sales from the previous 12 months in just nine months.

Overall, Axel Polymers has shown promising financial results for the quarter ended September 2023, with positive growth in net sales and inventory turnover ratio. Investors may want to consider holding onto their stocks in the company, as suggested by MarketsMOJO's 'Hold' stock call.