Bharat Seats' Financial Performance Holds Steady, MarketsMOJO Advises 'Hold' for Investors.
Bharat Seats, a microcap company in the auto ancillary industry, has declared its financial results for the quarter ending September 2024. While the company's score has fallen in the last 3 months, it has shown consistent growth in operating cash flow and has recorded its highest quarterly operating profit. However, its cash and cash equivalents have decreased and net profit margin has also decreased, with a high debt to equity ratio, indicating potential financial risk. MarketsMojo has advised investors to hold onto their current positions and not make any new investments in the company's stock.
Net Profit Margin - Quarterly: Lowest at 1.67% in the last five quarters.Profitability has decreased in the near term.Debt to Equity Ratio - Annually: Highest at 0.33 in the last five years.Company has higher debt compared to equity, which may increase financial risk.
Despite the mixed financial performance, MarketsMOJO has given a 'Hold' call for Bharat Seats' stock. This means that investors should hold onto their current positions and not make any new investments in the company's stock.
Bharat Seats, a microcap company in the auto ancillary industry, has declared its financial results for the quarter ending September 2024. The company's score has fallen from 8 to 4 in the last 3 months, indicating a flat performance.
However, there are some positive aspects to the company's financials. Bharat Seats has shown a consistent growth in its operating cash flow over the last three years, with the highest amount of Rs 56.74 crore in the last year. The company has also recorded its highest quarterly operating profit of Rs 17.66 crore in the last five quarters, showing a positive trend in the near term. Additionally, Bharat Seats has been distributing higher dividends to its shareholders from its profits.
On the other hand, there are some areas of concern for the company. Its cash and cash equivalents have decreased to the lowest amount of Rs 0.30 crore in the last six half yearly periods, indicating a deteriorating short term liquidity. The net profit margin has also decreased in the last five quarters, standing at its lowest of 1.67%. Moreover, Bharat Seats has a high debt to equity ratio of 0.33, which may increase its financial risk.
In conclusion, while Bharat Seats' financial performance may not be at its best, it is still holding its ground in the market. Investors are advised to hold onto their current positions and not make any new investments in the company's stock, as suggested by MarketsMOJO.
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