Century Enka's Q3 financials show strong growth in key areas, 'Hold' call by MarketsMOJO

Century Enka, a smallcap textile company, has recently declared its financial results for the quarter ending September 2024. The company has shown a very positive performance in this quarter, with its score improving from 21 to 20 in the last 3 months.

One of the key highlights of the financials is the growth in Profit Before Tax (PBT) less Other Income, which has increased by 112.0% compared to the average PBT of the previous four quarters. This indicates a very positive trend in the near term for the company.

Another positive aspect is the growth in Net Sales, which has been consistently increasing in the last five quarters. This shows a strong sales trend in the near term for Century Enka.

The company has also shown a significant growth in Profit After Tax (PAT), which has increased by 59.9% compared to the average PAT of the previous four quarters. This further strengthens the positive trend in the near term for the company.

In terms of dividends, Century Enka has been distributing higher dividends from its profits, with the Dividend per Share (DPS) being the highest in the last five years. The Dividend Payout Ratio (DPR) has also been consistently high, indicating that the company is distributing a higher proportion of its profits as dividends.

However, one area of concern is the Debtors Turnover Ratio, which has been the lowest in the last five half yearly periods. This suggests that the company's pace of settling its debtors has slowed down.

Overall, Century Enka has shown a strong financial performance in the quarter ending September 2024, with positive trends in key areas such as PBT, Net Sales, and PAT. The company's focus on distributing higher dividends to its shareholders is also a positive sign. However, the company may need to address the issue of its Debtors Turnover Ratio in order to maintain its growth trajectory. Based on these financials, MarketsMOJO has given a 'Hold' call for Century Enka's stock.