Credo Brands Reports Negative Financial Results for Q1 FY25, Investors Beware

Credo Brands, a smallcap retailing company, recently announced its financial results for the quarter ending June 2024. According to the report released on August 6, 2024, the stock call for Credo Brands by MarketsMOJO is ‘Sell’.

The company has seen a negative financial performance in the quarter, with a score of -15, which has improved from -19 in the last three months. This indicates that the company is facing some challenges in its operations.

One of the major factors contributing to this negative performance is the decline in Profit Before Tax (PBT) and Profit After Tax (PAT). The PBT for the quarter was Rs 11.85 crore, which is a decrease of 36.2% compared to the average PBT of the previous four quarters. Similarly, the PAT for the quarter was Rs 9.77 crore, a decline of 34.0% from the average PAT of the previous four quarters. This trend is expected to continue in the near term.

Another concerning factor is the decrease in Net Sales, which was Rs 123.89 crore for the quarter, a decline of 12.7% from the average Net Sales of the previous four quarters. This indicates a negative sales trend in the near term.

Additionally, the company’s interest costs have increased by 21.45% in the preceding nine months period, which suggests that the company has taken on more borrowings. This could potentially impact the company’s financial health in the long run.

Overall, the financial results for the quarter ending June 2024 show a negative trend for Credo Brands. Investors should carefully consider these factors before making any investment decisions.