Borosil's Q3 Financial Results Show Negative Performance and Concerning Trends

Borosil, a midcap glass company, has recently announced its financial results for the quarter ending September 2024. According to the report, the company has seen a negative performance in this quarter, with a score of -13 compared to -11 in the previous quarter.

One of the major factors contributing to this decline is the rising interest cost, which has grown by 53.23% in the last half-yearly period. This indicates an increase in borrowings for the company. Additionally, the operating cash flow for the company has also decreased, with the lowest figure of Rs 48.03 crore in the last three years.

The quarterly profit before tax (PBT) has also fallen by -5.1% compared to the average PBT of the previous four quarters. This trend is a cause for concern in the near term. Moreover, the company's non-operating income, which is 36.41% of the PBT, is quite high. This suggests that the company is relying heavily on non-business activities, which may not be a sustainable business model.

Another concerning aspect is the company's cash and cash equivalents, which are at their lowest in the last six half-yearly periods. This indicates a deterioration in short-term liquidity for the company. Additionally, the non-operating income for the quarter is at its highest in the last five quarters, which may not be a sustainable source of income for the company.

Based on these financial results, MarketsMOJO has given a 'Sell' call for Borosil's stock. Investors should carefully consider these factors before making any investment decisions.