Cineline India's Financial Performance Shows Negative Trend, Experts Advise Caution

Despite being a microcap company in the lifestyle industry, Cineline India has been facing challenges in its financial performance for the quarter ending June 2024. The company's net sales have fallen by 36.9% compared to the previous four quarters, indicating a negative trend in sales. This has also affected the company's profit before tax, which has decreased by 90.8% in the same period.

One of the major concerns for Cineline India is its ability to manage interest payments, as seen in the low operating profit to interest ratio of 0.45 times in the last five quarters. This indicates a deteriorating financial position for the company.

In terms of profitability, the company's profit after tax has also shown a negative trend, with a growth of -22.33% year on year. This is reflected in the declining earnings per share of Rs -3.08, which is the lowest in the last five quarters.

The company's cash and cash equivalents have also decreased, with the lowest amount of Rs 12.37 crore in the last six half yearly periods. This indicates a deteriorating short-term liquidity for Cineline India.

Based on these financial results, MarketsMOJO has given a 'Sell' call for Cineline India's stock. The company's score has also fallen from 5 to -13 in the last 3 months, further highlighting the negative trend in its financial performance.

Investors and experts are advised to carefully consider these financial results before making any investment decisions related to Cineline India. The company's current financial position and performance may not be favorable for potential investors.