Dhanlaxmi Fabric reports flat performance for Q1 FY25, but shows positive trend in profitability and earnings

Dhanlaxmi Fabric, a microcap textile company, has recently announced its financial results for the quarter ending June 2024. The company has reported a flat performance for the quarter, with a score of -5, which is an improvement from the previous quarter’s score of -18.

Despite the flat performance, there are some positive aspects to the company’s financials. The Profit After Tax (PAT) for the quarter was the highest in the last five quarters, at Rs -0.11 crore. This shows a positive trend in the company’s profitability in the near term. Additionally, the Earnings per Share (EPS) for the quarter was also the highest in the last five quarters, at Rs -0.13. This indicates that the company has been able to generate higher earnings for its shareholders.

However, there are also some areas of concern in Dhanlaxmi Fabric’s financials. The Net Sales for the half-year period have shown a decline of -56.04% Year on Year (YoY), at Rs 9.31 crore. This indicates a very negative sales trend in the near term. Another concerning aspect is the Debtors Turnover Ratio, which is at its lowest in the last five half-yearly periods, at 4.48 times. This suggests that the company’s pace of settling its debtors has slowed down.

Based on these financial results, MarketsMOJO has given a ‘Sell’ call for Dhanlaxmi Fabric’s stock. It is important for investors to carefully analyze the company’s financial performance and make informed decisions before investing in the stock.