Damodar Industries Reports Negative Performance in Q1, Stock Receives 'Sell' Rating

Damodar Industries, a microcap textile company, has recently declared its financial results for the quarter ending March 2024. According to the latest report, the company has seen a negative performance in the quarter, with a score of -18 compared to 16 in the previous quarter.

The company's net sales for the quarter have fallen by 33.3% to Rs 119.31 crore, which is significantly lower than the average net sales of the previous four quarters at Rs 178.85 crore. This indicates a negative trend in the company's sales in the near term.

Similarly, the profit before tax (PBT) less other income has also seen a significant decline of 93.1% to Rs -9.16 crore, compared to the average PBT of the previous four quarters at Rs -4.74 crore. The profit after tax (PAT) has also fallen by 206.5% to Rs -1.51 crore, which is a concerning trend for the company.

The company's operating profit to interest ratio has also reached its lowest point in the last five quarters at 0.26 times, indicating a deteriorating ability to manage interest payments. The operating profit (PBDIT) for the quarter is also at its lowest at Rs 1.40 crore, showing a negative trend in the company's operating profit.

The operating profit margin for the quarter is also at its lowest at 1.17%, indicating a decline in the company's efficiency. The PBT less other income has also reached its lowest point in the last five quarters at Rs -9.16 crore, showing a negative trend in the company's profitability.

The earnings per share (EPS) for the quarter is also at its lowest at Rs -0.65, indicating a decline in the company's profitability and lower earnings for shareholders. Based on these financial results, MarketsMOJO has given a 'Sell' call for Damodar Industries' stock.