Cupid's Q2 Financial Report Shows Positive Sales Growth, But Concerning Trends Emerge

Cupid, a smallcap company in the rubber products industry, 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 financial report, Cupid has shown positive performance in the second quarter of the fiscal year 2024-2025. However, the company's overall score has fallen from 11 to 8 in the last three months.

One of the highlights of the financial report is the growth in net sales, which has increased by 27.42% year on year, reaching Rs 91.30 crore. This indicates a positive trend in the company's sales in the near term.

On the other hand, the profit after tax (PAT) for the quarter has fallen by -12.6% compared to the average PAT of the previous four quarters. This is a concerning trend for the company in the near term.

Another area of concern for Cupid is its operating cash flow, which has been the lowest in the last three years at Rs 7.84 crore. This indicates a decline in the company's cash revenues from business operations.

In addition, Cupid's dividend per share (DPS) for the year has been the lowest in the last five years at Rs 0.00. This means that the company is distributing lower dividends to its shareholders compared to previous years.

Furthermore, the dividend payout ratio (DPR) for the year has also been the lowest in the last five years at 0.00%. This shows that the company is distributing a lower proportion of its profits as dividends.

Overall, while Cupid has shown positive growth in net sales, there are some concerning trends in its financial report. Investors should carefully consider these factors before making any investment decisions.