Hind Aluminium Reports Positive Financial Performance in Q4 2023 Despite 'Sell' Call by MarketsMOJO

Hind Aluminium Industries, a microcap company in the aluminium industry, recently announced its financial results for the quarter ending December 2023. The company's stock has been given a 'Sell' call by MarketsMOJO.

Despite this, Hind Aluminium has shown positive financial performance in the quarter, with a score of 13 compared to -6 in the previous 3 months. This improvement can be attributed to several factors.

One of the key highlights is the growth in Profit Before Tax (PBT) which has increased by 142.5% to Rs 1.88 crore compared to the average PBT of the previous four quarters which was at Rs -4.42 crore. This trend is expected to continue in the near term.

Similarly, the company's Profit After Tax (PAT) has also seen a significant growth of 218.4% to Rs 6.13 crore compared to the average PAT of the previous four quarters which was at Rs 1.93 crore. This is a positive sign for the company's profitability.

Hind Aluminium's Operating Profit (PBDIT) has also shown improvement, with the latest quarter recording the highest at Rs -0.34 crore in the last five quarters. This indicates a positive trend in the company's operating profit.

The company's Earnings per Share (EPS) have also been on the rise, with the latest quarter recording the highest at Rs 9.73 in the last five quarters. This shows that the company has been able to generate higher earnings for its shareholders.

However, there are some areas that need improvement. The Inventory Turnover Ratio, which measures the pace of selling inventory, has been at its lowest at 0.00 times and has fallen in each of the last five half-yearly periods. This indicates a slowdown in the company's inventory turnover.

Another concern is the high Non-Operating Income, which accounts for 75.74% of the Profit Before Tax (PBT). This suggests that the company's income from non-business activities is high, which may not be a sustainable business model.

In addition, the company's Cash and Cash Equivalents have been at its lowest at Rs 0.19 crore in the last six half-yearly periods, indicating a deterioration in short-term liquidity. The Debtors Turnover Ratio has also been at its lowest at 0.88 times in the last five half-yearly periods, indicating a slowdown in the company's pace of settling its debtors.

Overall, Hind Aluminium's financial performance for the quarter ending December 2023 has been positive, with some areas that need improvement. Investors should carefully consider these factors before making any investment decisions.