Disa India's Q2 FY24-25 financials show mixed results, MarketsMOJO advises 'Hold'

Disa India, a smallcap company in the engineering industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for Disa India is 'Hold'.

According to the financials, Disa India's performance in Q2 FY24-25 has remained flat, with a score of 1 out of 10 in the last 3 months. However, there are some positive aspects to the company's financials. The operating cash flow for the year has been the highest at Rs 55.86 crore and has shown growth in the last three years. This indicates that the company has been able to generate higher cash revenues from its business operations. Additionally, the dividend payout ratio (DPR) for the year has been the highest at 67.63%, which means that the company is distributing a higher proportion of its profits as dividends.

On the other hand, there are some areas of concern in Disa India's financials. The inventory turnover ratio for the half-yearly period has been the lowest at 3.77 times and has been falling in the last five half-yearly periods. This suggests that the company's pace of selling inventory has slowed down. Another red flag is the non-operating income for the quarter, which is 36.59% of the profit before tax (PBT). This indicates that the company's income from non-business activities is high, which may not be a sustainable business model. Moreover, the non-operating income for the quarter has been the highest at Rs 6.18 crore in the last five quarters, which may not be sustainable in the long run.

Overall, Disa India's financial performance for the quarter ending September 2024 has been flat, with some positive and negative aspects. Investors are advised to hold their positions in the company's stock, as recommended by MarketsMOJO.