Garnet Construction Reports Positive Q2 Results, Stock Given 'Hold' Rating by MarketsMOJO

Garnet Construction, a microcap company in the construction and real estate industry, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Garnet Construction has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 21 to 9 in the last three months, indicating a positive trend.

One of the key factors contributing to this positive performance is the company's net sales, which have grown by 971.81% year on year, reaching Rs 15.97 crore in the half-yearly period. This is a significant increase compared to the previous 12-month period, where the company's net sales were at Rs 11.14 crore. This shows a strong and positive sales trend for Garnet Construction.

However, there are some areas that need improvement for the company. The quarterly profit after tax (PAT) has fallen by 132.0% compared to the average PAT of the previous four quarters. This indicates a negative trend in the near term. Additionally, the company's operating cash flow has been consistently falling in the last three years, with the lowest being at Rs -2.33 crore in the last year. This shows a decline in the company's cash revenues from business operations.

Furthermore, the earnings per share (EPS) for the quarter have also been at its lowest in the last five quarters, at Rs -0.63. This indicates a decline in profitability and lower earnings for shareholders.

Overall, Garnet Construction has shown positive growth in its net sales, but there are some areas that need improvement. Investors are advised to hold their stock for now, as suggested by MarketsMOJO.