Ester Industries shows positive financial performance in Q2 2024 despite negative stock call

Ester Industries, a smallcap company in the plastic products industry, has recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is 'Sell'. Despite the negative stock call, Ester Industries has shown positive financial performance in the second quarter of the fiscal year 2024-25. The company's score has fallen from 8 to 7 in the last 3 months, indicating a slight decline in performance. However, there are several factors that are working in favor of Ester Industries based on its September 2024 financials. The company's Profit Before Tax less Other Income (PBT) has grown by 110.8% over the average PBT of the previous four quarters. The Profit After Tax (PAT) has also shown a growth of 110.5% over the average PAT of the previous four quarters. The company's Net Sales have consistently grown in the last five quarters, with the highest being Rs 331.16 crore in the September 2024 quarter. The company's ability to manage interest payments has also improved, with the Operating Profit to Interest ratio being the highest in the last five quarters. Moreover, the company's Operating Profit Margin has also shown improvement, with the highest being 12.02% in the last five quarters. This indicates that the company's efficiency has improved. The Earnings per Share (EPS) have also increased, showing that the company has created higher earnings for its shareholders. However, there are some areas that are not working in favor of Ester Industries. The company's Operating Cash Flow has been consistently falling in the last three years, indicating a decline in cash revenues from business operations. The Dividend Payout Ratio (DPR) has also been consistently falling in the last five years, showing that the company is distributing a lower proportion of its profits as dividends. The company's interest cost has also increased, indicating a rise in borrowings. Additionally, the company's non-operating income is high, which is not a sustainable business model. The company's pace of settling its debtors has also slowed down, as shown by the Debtors Turnover Ratio. Overall, Ester Industries has shown positive financial performance in the September 2024 quarter, but there are some areas that need improvement. Investors should carefully consider these factors before making any investment decisions.