Jenburkt Pharma Reports Positive Financial Results for Q2 2024, Stock Receives 'Hold' Rating

Jenburkt Pharmaceuticals, a microcap company in the pharmaceuticals and drugs industry, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Jenburkt Pharma has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 1 to 11 in the last three months.

One of the key factors contributing to this positive performance is the increase in net sales, which reached a high of Rs 41.22 crore in the last five quarters. The company's operating profit (PBDIT) has also seen a significant increase, reaching a high of Rs 11.43 crore in the same period. This trend is expected to continue in the near term.

Jenburkt Pharma's profit before tax (PBT) has also shown a positive trend, reaching a high of Rs 10.67 crore in the last five quarters. This is a 30.3% increase over the average PBT of the previous four quarters. Similarly, the company's profit after tax (PAT) has also seen a significant increase, reaching a high of Rs 9.60 crore in the last five quarters. This is a 37.0% increase over the average PAT of the previous four quarters.

The company's earnings per share (EPS) have also reached a high of Rs 21.77 in the last five quarters, indicating increasing profitability and higher earnings for shareholders. Additionally, Jenburkt Pharma has been able to settle its debtors faster, with a debtors turnover ratio of 9.94 times in the last five half-yearly periods.

However, there are some areas that need improvement for Jenburkt Pharma. The company's operating cash flow has been decreasing, reaching a low of Rs 8.12 crore in the last three years. This indicates a decline in cash revenues from business operations. Additionally, the company's non-operating income has seen a significant increase, reaching a high of Rs 1.85 crore in the last five quarters. This may not be sustainable in the long term.

Overall, Jenburkt Pharmaceuticals has shown positive financial performance in the recent quarter, with increasing sales and profits. However, the company needs to address its declining operating cash flow and be cautious about its non-operating income. Investors are advised to hold their stocks in the company for now, as recommended by MarketsMOJO.