Engineers India's Q1 Financial Results Show Mixed Performance, Investors Advised to Hold Stock

Engineers India, a midcap engineering company, recently declared its financial results for the quarter ending June 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financials, Engineers India has seen a negative performance in the quarter, with a score of -14 compared to -5 in the previous quarter. However, there are some positive aspects to the company's financials.

The company has shown a strong inventory turnover ratio, with a highest of 5,291.71 times in the last five half yearly periods. This indicates that Engineers India has been able to sell its inventory at a faster rate. Additionally, the debtors turnover ratio has also been high at 9.78 times, showing that the company has been able to settle its debtors quickly.

On the other hand, there are some areas of concern in the financials. The net sales for the quarter have fallen by -23.9% compared to the average net sales of the previous four quarters. This indicates a negative trend in the near term. Similarly, the profit before tax (PBT) has also fallen by -37.6% compared to the average PBT of the previous four quarters. The profit after tax (PAT) has also seen a decline of -17.7% compared to the average PAT of the previous four quarters.

Moreover, the net sales and PBT for the quarter are the lowest in the last five quarters, indicating a negative trend in the near term. The company's non-operating income is also high, accounting for 49.04% of the PBT. This suggests that the company's income from non-business activities is not sustainable in the long run.

Overall, Engineers India has shown a mixed performance in the quarter ending June 2024. While there are some positive aspects, there are also areas of concern that need to be addressed by the company. Investors are advised to hold their stock and monitor the company's performance in the upcoming quarters.