JNK India's Q2 financial results show flat performance with concerning factors.

JNK India, a smallcap company in the engineering industry, recently declared its financial results for the quarter ending September 2024. According to the report, the company's performance has remained flat in the second quarter of the fiscal year 2024-25. However, there has been a slight improvement in the overall score, which has gone from -15 to -5 in the last three months.

Despite this improvement, there are some concerning factors in JNK's financials. The net sales for the quarter have fallen by 21.9% 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. Similarly, the profit before tax (PBT) has also seen a significant decline of 60.5% compared to the average PBT of the previous four quarters. The same trend is seen in the profit after tax (PAT), which has fallen by 52.4%.

Another concerning aspect is the company's operating cash flow, which has been consistently falling in the last three years. In the latest financial year, the operating cash flow was at its lowest at Rs -10.07 crore. This indicates a decline in the company's cash revenues from business operations.

On a positive note, JNK has seen an increase in its non-operating income in the last five quarters, with the highest being Rs 3.55 crore. However, this income from non-business activities may not be sustainable in the long run.

Based on these financial results, MarketsMOJO has given a 'Sell' call for JNK's stock. It is important for investors to carefully analyze the company's financial performance and make informed decisions.