Indian Acrylics Reports Decline in Sales and Profit, Receives 'Strong Sell' Rating

Indian Acrylics, a microcap company in the textile industry, has recently declared its financial results for the quarter ending September 2024. The company has received a 'Strong Sell' stock call from MarketsMOJO based on its negative financial performance in the quarter.

According to the financial report, Indian Acrylics has seen a decline in its net sales by 26.6% compared to the average net sales of the previous four quarters. This indicates a negative trend in the company's sales in the near term. Additionally, the company's operating cash flow has been consistently falling in the last three years, with the lowest recorded at Rs 8.63 crore in the current year.

The profit after tax (PAT) for the first half of the year has also shown a negative trend, with a growth rate of -32.16% compared to the previous year. This is reflected in the company's quarterly net sales, which have been at their lowest in the last five quarters. Furthermore, the company's short-term liquidity is deteriorating, with the lowest cash and cash equivalents recorded at Rs 8.64 crore in the last six half-yearly periods.

The debt-equity ratio for Indian Acrylics has also been on the rise, reaching its highest at 8.94 times in the last five half-yearly periods. This indicates that the company is relying more on borrowing to fund its operations, which may lead to a stressed liquidity situation.

Overall, the financial results for the quarter ending September 2024 show a negative trend for Indian Acrylics. Investors are advised to exercise caution and consider the company's financial performance before making any investment decisions.