Kallam Textiles Reports Decline in Performance, Receives 'Strong Sell' Rating from MarketsMOJO

Kallam Textiles, a microcap company in the textile industry, recently announced its financial results for the quarter ending March 2024. The results, declared on August 14, 2024, have received a 'Strong Sell' call from MarketsMOJO.

According to the financial report, Kallam Textiles has seen a significant decline in its performance in the last three months, with a score of -24 compared to -12 in the previous quarter. This negative trend can be attributed to various factors.

One of the major concerns for the company is its net sales, which have fallen by 51.61% year on year, standing at Rs 56.08 crore. This trend is expected to continue in the near term, as indicated by the financial report. Similarly, the profit before tax (PBT) has also seen a decline of 30.19% year on year, with a value of Rs -14.92 crore. The profit after tax (PAT) has also taken a hit, falling by 28.2% year on year, with a value of Rs -9.37 crore.

Another worrying aspect for Kallam Textiles is its operating cash flow, which has been consistently falling over the last three years. In the last financial year, the company's cash revenues from business operations were at their lowest, standing at Rs 24.02 crore.

Furthermore, the net sales for the quarter have also been on a downward trend, with the current quarter's value being the lowest at Rs 56.08 crore. This trend has been observed in the last five quarters, indicating a negative near-term sales trend.

Overall, the financial results for the quarter ending March 2024 have not been favorable for Kallam Textiles. With a 'Strong Sell' call from MarketsMOJO, it is evident that the company needs to address its declining performance and take necessary steps to improve its financials.