Endurance Technologies shows strong financial performance in Q2 FY24-25.

Inventory Turnover Ratio- Half Yearly: Lowest at 6.55 times in the last five half yearly periods.Company's pace of selling its Inventory has slowed.

Endurance Technologies, a leading auto ancillary company, has recently announced its financial results for the quarter ended September 2024. The company has shown a positive performance in the second quarter of the fiscal year 2024-25, with a score of 13 out of 15. This is a slight decrease from the previous quarter, but still reflects a strong financial position for the company.

One of the key highlights of the financial results is the company's strong operating cash flow, which has been consistently growing over the last three years. In the last fiscal year, Endurance Tech recorded the highest operating cash flow of Rs 1,057.09 crore. This indicates that the company has been able to generate higher revenues from its business operations.

Another positive aspect of the financial results is the company's net sales, which have been growing each quarter in the last five quarters. In the second quarter of FY24-25, Endurance Tech recorded the highest net sales of Rs 2,912.66 crore. This shows a strong and positive sales trend for the company in the near term.

The company's profit before tax (PBT) and profit after tax (PAT) have also shown a positive growth in the second quarter of FY24-25. The PBT has grown at 25.86% year on year, while the PAT has grown at 31.3% year on year. This indicates that Endurance Tech has been able to maintain a strong financial performance and profitability.

However, there are some areas that need improvement for Endurance Tech. The debtors turnover ratio and inventory turnover ratio have both been at their lowest in the last five half yearly periods. This suggests that the company's pace of settling its debtors and selling its inventory has slowed down. This is something that the company needs to address in order to maintain a strong financial position.

Overall, the financial results for the quarter ended September 2024 show a positive performance for Endurance Technologies. With a strong operating cash flow and growing net sales, the company is well-positioned in the auto ancillary industry. However, it is important for the company to address its slow pace of settling debtors and selling inventory in order to maintain its growth trajectory. Based on these financial results, MarketsMOJO has given a 'Hold' call for Endurance Tech's stock.