Continental Securities' Q2 FY25 financials show potential instability with lowest annual cash flow.

This could be a cause for concern for investors.

Net Cash Flow – Annually: Lowest at Rs -3.53 Cr and Falleneach year in the last three years.The company’s overall cash flow is negative, indicating potential financial instability.

Continental Securities, a microcap finance company, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financials, Continental Securities has seen a flat performance in the quarter, with a score of 3 out of 10, a decrease from 6 in the previous quarter. However, there are some positive aspects to the company’s financials.

The company’s operating profit (PBDIT) for the quarter was the highest in the last five quarters at Rs 0.52 crore, and it has been growing each quarter. This indicates a positive trend in the near term. Similarly, the profit before tax (PBT) less other income was also the highest in the last five quarters at Rs 0.50 crore, with a positive trend in the near term. The profit after tax (PAT) for the quarter was also the highest in the last five quarters at Rs 0.37 crore, with a positive trend in the near term.

However, there are some areas of concern for investors. The company’s operating cash flow for the year was the lowest in the last three years at Rs -3.53 crore, and it has been falling each year. This could be a cause for concern as it indicates a decrease in cash revenues from business operations. Additionally, the net cash flow for the year was also the lowest in the last three years at Rs -3.53 crore, with a negative trend. This could be a red flag for potential financial instability.

Overall, Continental Securities has shown a mixed performance in the quarter ending September 2024. Investors should carefully consider all aspects of the company’s financials before making any investment decisions.