Bajel Projects Reports Positive Financial Performance in Q1 FY25, But Concerns Remain

Bajel Projects, a smallcap engineering company, has recently announced its financial results for the quarter ending June 2024. The company has shown a positive performance with a score of 19, an improvement from 17 in the last 3 months.

One of the key highlights of the financial report is the significant growth in Profit After Tax (PAT) which has increased by 84.5% to Rs 5.52 crore compared to the average PAT of the previous four quarters which was Rs 2.99 crore. This indicates a very positive trend in the near term for the company.

Another positive aspect is the growth in Net Sales which has increased by 75.2% to Rs 512.01 crore compared to the average Net Sales of the previous four quarters which was Rs 292.30 crore. This is the highest net sales in the last five quarters and shows a positive trend in the near term.

However, there are some areas of concern for Bajel Projects. The interest cost has increased by 214.19% to Rs 19.26 crore in the half-yearly period, indicating a rise in borrowings. Additionally, the company’s non-operating income is 156.84% of the Profit Before Tax (PBT), which suggests that the company’s income from non-business activities is high and may not be a sustainable business model.

Overall, Bajel Projects has shown a positive financial performance in the quarter ending June 2024. However, investors should carefully consider the areas of concern before making any investment decisions. MarketsMOJO has given a ‘Sell’ call for the company’s stock.