HP Adhesives Reports Decline in Financial Performance, Receives Strong Sell Rating

Nov 14 2024 07:58 PM IST
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HP Adhesives, a microcap company in the chemicals industry, reported a decline in financial health for the quarter ending September 2024. The company's PBT, PAT, and operating profit have all decreased compared to the previous four quarters, leading to a Strong Sell rating by MarketsMojo.

HP Adhesives, a microcap company in the chemicals industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a "Strong Sell" rating by MarketsMOJO.

According to the financial report, HP Adhesives has seen a negative performance in the second quarter of the fiscal year 2024-2025. The company's score has dropped from 6 to -10 in the last three months, indicating a decline in its financial health.

One of the major factors contributing to this decline is the decrease in Profit Before Tax (PBT) less Other Income. The company's PBT for the quarter was Rs 4.82 crore, which is a 25.1% decrease from the average PBT of the previous four quarters. This trend is expected to continue in the near term.

Similarly, the company's Profit After Tax (PAT) has also decreased by 23.4% compared to the average PAT of the previous four quarters. The operating profit (PBDIT) for the quarter was also at its lowest in the last five quarters, indicating a negative trend in the company's financial performance.

The operating profit margin for the quarter was also at its lowest in the last five quarters, showing a decline in the company's efficiency. Additionally, the company's earnings per share (EPS) for the quarter were at its lowest in the last five quarters, indicating a decrease in profitability and lower earnings for shareholders.

Overall, HP Adhesives has seen a negative financial performance in the quarter ending September 2024. The company's stock has been given a "Strong Sell" rating by MarketsMOJO, indicating a cautionary approach for investors.
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