Banas Finance Reports Disappointing Q1 FY25 Results, Investors Beware

Banas Finance, a microcap finance company, recently declared its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Strong Sell’ call by MarketsMOJO.

According to the financials, Banas Finance has seen a flat performance in the quarter, with a score of -2 compared to 9 in the previous 3 months. This decline can be attributed to various factors.

One of the major concerns for the company is its net sales, which have fallen by 66.6% to Rs 6.07 crore compared to the average net sales of the previous four quarters, which was Rs 18.16 crore. This indicates a very negative trend in the near term for the company’s sales.

Similarly, the profit before tax less other income (PBT) has also seen a significant decline of 209.5% to Rs -7.30 crore compared to the average PBT of the previous four quarters, which was Rs 6.67 crore. The profit after tax (PAT) has also fallen by 673.8% to Rs -6.57 crore compared to the average PAT of the previous four quarters, which was Rs 1.15 crore. This shows a very negative trend in the near term for the company’s profitability.

Moreover, Banas Finance has recorded its lowest net sales and operating profit (PBDIT) in the last five quarters, indicating a negative trend in the near term. The operating profit margin has also reached its lowest at -120.26%, showing a deterioration in the company’s efficiency.

In conclusion, Banas Finance’s financial performance for the quarter ending June 2024 has been disappointing, with a decline in net sales, profitability, and efficiency. Investors should take note of these factors before making any investment decisions.