Kama Holdings Reports Negative Financial Performance

Kama Holdings, a midcap finance and non-banking financial company (NBFC), recently declared its financial results for the quarter ended September 2023. The stock call by MarketsMOJO for Kama Holdings is 'Sell'.

According to the quarterly analysis, the company has seen a decline in net sales by 4.65% compared to the previous quarter and a decrease in consolidated net profit by 17.96%. The operating profit (PBDIT) excluding other income has also decreased by 9.37%. However, there has been a growth in interest by 21.00%.

The operating profit margin (excluding other income) has fallen from the previous quarter, indicating a decline in the company's efficiency. The overall financial performance for the quarter has been negative, with a score of -16 compared to -11 in the last three months.

On a positive note, Kama Holdings has shown a strong operating cash flow annually, with a growth in the last three years. However, the profit before tax (PBT) and profit after tax (PAT) have both fallen by 45.47% and 60.9% respectively, compared to the same quarter last year. The net sales have also decreased by 17.63% year on year, with the lowest sales in the last five quarters.

The company's operating profit and profit before tax have also been at their lowest in the last five quarters, indicating a negative trend in the near term. The earnings per share (EPS) have also declined, creating lower earnings for shareholders. The debt-equity ratio has also increased, indicating that the company is borrowing more to fund its operations.

Overall, Kama Holdings has seen a negative financial performance in the quarter ended September 2023. While the company has shown strong operating cash flow, the decline in net sales and profits raises concerns about its future performance. Investors should carefully consider these factors before making any investment decisions.