EKI Energy Services Announces Q2 FY25 Financial Results, Receives 'Strong Sell' Rating from MarketsMOJO

EKI Energy Services, a microcap company in the capital goods industry, recently announced its financial results for the quarter ending September 2024. The results, declared on October 25, 2024, have received a ‘Strong Sell’ rating from MarketsMOJO.

According to the financials, EKI Energy has seen a flat performance in the quarter, with a score of -1 compared to 6 in the previous three months. However, there are some positive aspects to the company’s financials. The operating cash flow for the year is the highest at Rs 148.73 crore and has been growing consistently over the past three years. Additionally, the company has shown a positive trend in its profit after tax (PAT) for the quarter, with the highest recorded at Rs 4.09 crore in the last five quarters. The earnings per share (EPS) for the quarter have also been the highest at Rs 1.49, indicating an increase in profitability and higher earnings for shareholders.

On the other hand, there are some areas of concern for EKI Energy. The net sales for the quarter have fallen by 23% compared to the average of the previous four quarters, indicating a negative trend in sales. The non-operating income for the quarter is also high at 140.05% of the profit before tax (PBT), which may not be a sustainable business model. Additionally, the company has distributed the lowest dividend per share (DPS) of Rs 0.00 in the last five years, and the dividend payout ratio (DPR) is also at its lowest at 0.00%, indicating a lower proportion of profits being distributed as dividends.

Overall, EKI Energy’s financial performance for the quarter ending September 2024 has been mixed, with some positive and negative aspects. Investors are advised to carefully consider these factors before making any investment decisions.