Kanoria Chemicals & Industries Reports Negative Performance in Q1 FY25 Financial Results

Kanoria Chemicals & Industries, a microcap company in the chemicals industry, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a “Strong Sell” rating by MarketsMOJO.

According to the financial report, Kanoria Chem. has seen a negative performance in the quarter, with a score of -12 compared to 0 in the previous three months. This decline can be attributed to several factors.

One of the major concerns is the company’s Profit Before Tax (PBT) less Other Income, which has fallen by 77.8% to Rs -25.15 crore compared to the average PBT of the previous four quarters. This indicates a negative trend in the near term. Similarly, the Profit After Tax (PAT) has also decreased by 96.8% to Rs -17.70 crore, showing a very negative trend in the near future.

The company’s ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio at its lowest in the last five quarters. Additionally, the Operating Profit (PBDIT) has also decreased to its lowest at Rs 1.80 crore in the last five quarters, indicating a negative trend in the near term. The Operating Profit Margin has also decreased to its lowest at 0.47%, showing a decline in the company’s efficiency.

Furthermore, the Debt-Equity Ratio has reached its highest at 0.85 times in the last five half-yearly periods. This suggests that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Overall, the financial results for the quarter ending June 2024 have not been favorable for Kanoria Chemicals & Industries. Investors should carefully consider these factors before making any investment decisions.