Everest Organics Reports Mixed Performance in Q2 FY25 Financial Results

Everest Organics, a microcap pharmaceutical company, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Strong Sell’ call by MarketsMOJO.

According to the financial report, Everest Organics has shown a flat performance in the second quarter of the fiscal year 2024-2025. However, there has been an improvement in the company’s score, which has increased from -15 to 4 in the last three months.

One of the positive aspects of the company’s financials is its operating profit to interest ratio, which is the highest it has been in the last five quarters at 2.54 times. This indicates that Everest Organics is improving its ability to manage interest payments. Additionally, the company’s operating profit (PBDIT) for the quarter was the highest in the last five quarters at Rs 3.43 crore, showing a positive trend in the near term. The operating profit margin has also improved, reaching its highest at 7.79% in the last five quarters, indicating an increase in efficiency.

Furthermore, the profit before tax less other income (PBT) for the quarter was the highest in the last five quarters at Rs 0.61 crore, with a positive trend in the near term. The profit after tax (PAT) for the quarter was also the highest in the last five quarters at Rs 0.74 crore, showing a positive trend in the near term. This has resulted in an increase in the earnings per share (EPS) to Rs 0.93, indicating a rise in profitability and higher earnings for shareholders.

However, there are some areas that need improvement for Everest Organics. The net sales for the quarter were at Rs 44.05 crore, which is a decrease of -5.8% compared to the average net sales of the previous four quarters at Rs 46.76 crore. This shows a negative trend in the near term. Additionally, the company’s dividend payout ratio (DPR) for the last five years is at its lowest at 0.00%, indicating that the company is distributing a lower proportion of its profits as dividends.

Overall, Everest Organics has shown a mixed performance in the recent quarter, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.