Dhunseri Tea & Industries Reports Mixed Performance in Q3 2023 Financial Results

Dhunseri Tea & Industries, a microcap company in the tea/coffee industry, recently announced its financial results for the quarter ending December 2023. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financials, Dhunseri Tea has seen a negative performance in the quarter, with a score of -18, which has improved from -24 in the last 3 months. However, there are some positive aspects to the company's performance.

The net sales for the quarter were Rs 115.33 crore, showing a growth of 26.61% year on year. The near-term sales trend is also positive for the company.

On the other hand, there are some areas where Dhunseri Tea's performance has not been as strong. The profit before tax less other income (PBT) for the quarter was Rs -46.05 crore, showing a decline of -1334.58% year on year. The near-term trend for PBT is very negative. Similarly, the profit after tax (PAT) for the quarter was Rs -44.32 crore, showing a decline of -468.7% year on year. The near-term trend for PAT is also very negative.

The company's interest cost has also increased, with a growth of 47.16% over the previous half-yearly period. This signifies increased borrowings for the company. Additionally, the debt-equity ratio for the company is at its highest at 0.31 times and has grown each half-yearly period in the last five years. This indicates that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Furthermore, the earnings per share (EPS) for the quarter was at its lowest at Rs -42.17 in the last five quarters. This shows a declining profitability for the company and lower earnings for shareholders.

Overall, Dhunseri Tea & Industries has had a mixed performance in the quarter ending December 2023. While there are some positive aspects, there are also areas of concern that investors should keep in mind before making any investment decisions.