Jyoti Resins and Adhesives Reports Flat Performance in Q2 2024, Strong Operating Cash Flow and High Dividend Payout

Jyoti Resins and Adhesives, a smallcap company in the chemicals industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Jyoti Resins has seen a flat performance in the second quarter of the fiscal year 2024-2025, with a score of -2 compared to 4 in the previous quarter. However, there are some positive aspects to the company's financials.

One of the key highlights is the company's strong operating cash flow, which has been the highest in the last three years at Rs 26.86 crore. This indicates that the company has generated higher cash revenues from its business operations. Additionally, Jyoti Resins has also been distributing higher dividends to its shareholders, with the dividend per share (DPS) being the highest at Rs 9.00 in the last five years. The dividend payout ratio (DPR) has also been consistently high at 16.09%, indicating that the company is distributing a higher proportion of its profits as dividends.

However, there are some areas of concern for Jyoti Resins. The profit before tax less other income (PBT) for the quarter has fallen by -10.8% compared to the average PBT of the previous four quarters. The operating profit (PBDIT) for the quarter is also at its lowest in the last five quarters, indicating a negative trend in the company's near-term performance. The operating profit margin has also decreased to its lowest at 29.75%, indicating a decline in the company's efficiency. The profit after tax (PAT) for the quarter has also fallen by -7.1% compared to the average PAT of the previous four quarters.

Overall, Jyoti Resins and Adhesives has shown a mixed performance in the recent quarter, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.