Gandhi Special Tubes Reports Mixed Performance in Q2 2024-25 Financial Results

Gandhi Special Tubes, a microcap company in the steel/sponge iron/pig iron industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is 'Sell'.

According to the financials, Gandhi Special Tubes has shown a flat performance in the second quarter of the fiscal year 2024-25. However, there has been an improvement in the company's overall score, which has increased from -3 to 3 in the last three months.

The company's net sales for the quarter were the highest in the last five quarters at Rs 48.61 crore, indicating a positive trend in near term sales. Similarly, the operating profit (PBDIT) for the quarter was also the highest in the last five quarters at Rs 19.82 crore, showing a positive trend in near term operating profit.

Gandhi Special Tubes has also shown improvement in its operating profit margin, which was the highest in the last five quarters at 40.77%. This indicates an increase in the company's efficiency. The profit before tax (PBT) less other income for the quarter was also the highest in the last five quarters at Rs 18.96 crore, with a positive trend in near term PBT.

The company's profit after tax (PAT) for the quarter was the highest in the last five quarters at Rs 17.25 crore, with a positive trend in near term PAT. The earnings per share (EPS) for the quarter were also the highest in the last five quarters at Rs 14.19, indicating an increase in profitability and higher earnings for shareholders.

On the other hand, there are some areas that need improvement for Gandhi Special Tubes. The company's operating cash flow for the year was the lowest in the last three years at Rs 26.36 crore, indicating a decline in cash revenues from business operations. The dividend payout ratio (DPR) for the year was also the lowest in the last five years at 28.42%, with a decrease each year. This shows that the company is distributing a lower proportion of profits as dividends.

Additionally, the non-operating income for the quarter was the highest in the last five quarters at Rs 4.18 crore. While this may seem positive, it is important to note that this income is from non-business activities and may not be sustainable in the long run.

Overall, Gandhi Special Tubes has shown a mixed performance in the recent quarter, with some areas of improvement and some areas that need attention. Investors should carefully consider these factors before making any investment decisions.