Hikal's Q2 FY24-25 financial results show mixed performance, with positive indicators and areas for improvement.

Hikal, a midcap pharmaceutical and drug company, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

In the second quarter of FY24-25, Hikal's financial performance remained flat with a score of -1, showing a significant improvement from -23 in the last three months. This indicates a positive trend for the company.

One of the key factors contributing to Hikal's success is its Profit After Tax (PAT), which has grown by 20.06% year on year to reach Rs 23.40 crore in the first half of the year. The company has also maintained a low Debt-Equity Ratio of 0.64 times, indicating a reduction in borrowing compared to equity capital. Additionally, Hikal has a high Dividend Payout Ratio (DPR) of 21.26%, showing that it distributes a higher proportion of its profits as dividends.

However, there are some areas of concern for Hikal. The company's interest costs have increased by 30.67% in the last half-year period, indicating a rise in borrowings. Furthermore, Hikal's Operating Cash Flow has been declining over the past three years, with the lowest recorded at Rs 186.72 crore in the last year. This suggests that the company's cash revenues from business operations are decreasing.

Overall, Hikal's financial results for the quarter ending September 2024 show a mixed performance. While there are some positive indicators, there are also areas that need improvement. Investors are advised to hold their positions on the stock, as recommended by MarketsMOJO.