Damodar Industries Reports Mixed Financial Results for Q2 FY24-25

Damodar Industries, a microcap textile company, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financials, Damodar Industries has seen a negative performance in the second quarter of FY24-25, with a score of -10, which has improved from -15 in the last three months.

However, there are some positive aspects to the company's financials. The operating cash flow for the year is the highest at Rs 70.11 crore and has been growing consistently over the last three years. This indicates that the company has been able to generate higher cash revenues from its business operations.

On the other hand, there are some areas of concern for Damodar Industries. The net sales for the quarter were at Rs 96.72 crore, which is a significant decrease of -39.1% compared to the average net sales of the previous four quarters at Rs 158.90 crore. This shows a negative trend in the company's sales in the near term.

The profit after tax (PAT) for the half-yearly period was at Rs -0.77 crore, which has decreased by -45.06% year on year. This also indicates a negative trend in the company's PAT in the near term. Additionally, the net sales for the quarter were at its lowest in the last five quarters, further highlighting the negative sales trend.

Another concerning aspect is the non-operating income for the quarter, which is at 438.10% of the profit before tax (PBT). This suggests that the company's income from non-business activities is high, which may not be a sustainable business model.

Overall, the financial results for the quarter ending September 2024 for Damodar Industries show a mix of positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.