Bengal Tea & Fab reports strong financial performance in Q2 2024, despite 'Sell' call by MarketsMOJO

Bengal Tea & Fab, a microcap company in the textile industry, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

Despite this, Bengal Tea & Fab has shown positive financial performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 10 to 17 in the last three months, indicating a positive trend.

According to the financials, Bengal Tea & Fab has seen significant growth in key areas. The Profit Before Tax less Other Income (PBT) for the quarter has grown by 1026.9% compared to the average of the previous four quarters. The Profit After Tax (PAT) has also shown a growth of 1264.3% compared to the average of the previous four quarters. The company's Net Sales for the half-yearly period has grown by 54.28% year on year, indicating a positive sales trend. Additionally, the company has generated the highest Operating Cash Flow in the last three years, showing a strong ability to generate cash from business operations.

Furthermore, Bengal Tea & Fab has also shown a positive trend in its Operating Profit (PBDIT) and Profit Before Tax less Other Income (PBT) for the quarter, with both being the highest in the last five quarters. The company has also been distributing higher dividends to its shareholders, with the Dividend per Share (DPS) being the highest in the last five years.

However, there are some areas that need improvement for Bengal Tea & Fab. The Non-Operating Income for the quarter is 33.19% of the Profit Before Tax (PBT), indicating a high reliance on non-business activities. Additionally, the Dividend Payout Ratio (DPR) for the company is the lowest in the last five years, indicating a lower proportion of profits being distributed as dividends.

Overall, Bengal Tea & Fab has shown positive financial performance in the recent quarter, but there are some areas that need to be addressed for sustainable growth in the future. Investors are advised to carefully consider these factors before making any investment decisions.