Hikal's Q1 FY25 Financial Results Show Significant Decline, Stock Call: Hold

Hikal, a smallcap pharmaceutical company, recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, a leading financial analysis platform, the stock call for Hikal is ‘Hold’.

The company has seen a significant decline in its financial performance in the last quarter, with a score of -23 compared to 3 in the previous quarter. This is a cause for concern for investors.

Some key areas that have contributed to this decline include a decrease in Profit Before Tax (PBT) and Profit After Tax (PAT) by 72.5% and 70.7% respectively, compared to the average of the previous four quarters. The company’s interest costs have also increased by 29.41%, indicating a rise in borrowings.

Moreover, Hikal’s ability to manage its interest payments has deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters. The company’s net sales have also fallen by 8.8% compared to the average of the previous four quarters.

In addition, the company’s profitability has declined, with the lowest Earnings per Share (EPS) in the last five quarters. The company’s short-term liquidity has also deteriorated, with the lowest cash and cash equivalents in the last six half-yearly periods.

Furthermore, Hikal’s pace of settling its debtors has slowed down, with the lowest Debtors Turnover Ratio in the last five half-yearly periods.

Overall, Hikal’s financial performance for the quarter ending June 2024 has been very negative, and investors are advised to hold their positions in the company’s stock.