Despite Positive Net Sales, Diamond Power's Q2 Financial Results Raise Concerns

Diamond Power Infrastructure, a midcap company in the cable industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

Despite this, Diamond Power has shown positive financial performance in Q2 FY24-25. The company's score has improved from 30 to 13 in the last 3 months. This is a result of their net sales, which have grown by 103.2% to Rs 250.30 crore, compared to the average net sales of the previous four quarters at Rs 123.20 crore. The near-term sales trend is also very positive for the company.

In addition, Diamond Power's net sales for the quarter were the highest in the last five quarters, indicating a positive sales trend in the near future.

However, the company's profit after tax (PAT) for the quarter has fallen by -43.8% to Rs 4.00 crore, compared to the average PAT of the previous four quarters at Rs 7.12 crore. This is a concerning trend for the company. Furthermore, their interest cost has increased by 61.80% quarter on quarter (QoQ), reaching a high of Rs 4.32 crore. This signifies increased borrowings for the company.

Overall, Diamond Power's financial results for the quarter ending September 2024 show a mixed performance. While their net sales have seen significant growth, their PAT and interest costs have raised some concerns. Investors should carefully consider these factors before making any decisions regarding the company's stock.