Ind-Swift's Q2 financial results show mixed performance, with concerns over PAT and cash flow

Ind-Swift, a microcap pharmaceutical company, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

Despite the negative recommendation, Ind-Swift has shown positive financial performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 5 to 8 in the last three months.

One of the key factors contributing to this improvement is the company's ability to manage interest payments, with the Operating Profit to Interest ratio being the highest in the last five quarters at 1.51 times. Additionally, the company's net sales for the quarter were also the highest in the last five quarters at Rs 136.35 crore, indicating a positive trend in sales.

However, there are some areas of concern for Ind-Swift. The Profit After Tax (PAT) for the quarter has fallen by 59.0% compared to the average PAT of the previous four quarters. This negative trend in PAT is a cause for worry. Additionally, the company's operating cash flow has been consistently falling over the last three years, with the lowest being Rs 15.28 crore. Moreover, the company's non-operating income is 112.65% of its Profit Before Tax, which is not a sustainable business model.

Overall, Ind-Swift has shown a mixed performance in the latest quarter, with some positive and negative trends. Investors should carefully consider these factors before making any investment decisions.