Kerala Ayurveda Reports Strong Financial Performance in Q1 FY25 Despite 'Sell' Call from MarketsMOJO

Kerala Ayurveda, a microcap pharmaceutical company, has recently announced its financial results for the quarter ended March 2024. The company has received a ‘Sell’ call from MarketsMOJO, a leading financial analysis platform.

Despite this, Kerala Ayurveda has shown positive financial performance in the quarter, with its score remaining consistent over the last three months. The company’s net sales for the quarter were the highest at Rs 27.39 crore, and have been growing each quarter for the past five quarters. This indicates a very positive sales trend in the near term.

The company’s ability to manage interest payments has also improved, with its operating profit to interest ratio being the highest at 1.81 times in the last five quarters. Additionally, the operating profit (PBDIT) for the quarter was the highest at Rs 3.06 crore, and the operating profit margin was the highest at 11.17% in the last five quarters, showing an improvement in the company’s efficiency.

Furthermore, the profit before tax less other income (PBT) for the quarter was the highest at Rs 1.02 crore, and the company’s short-term liquidity has improved with its cash and cash equivalents being the highest at Rs 22.79 crore in the last six half-yearly periods. The debt-equity ratio has also decreased, indicating that the company has been reducing its borrowing as compared to equity capital.

However, there are some areas that need improvement for Kerala Ayurveda. The interest cost for the quarter has increased by 168,999,900.00% quarter on quarter, which signifies increased borrowings. This is also reflected in the company’s interest cost being the highest at Rs 1.69 crore in the last five quarters.

Overall, Kerala Ayurveda has shown positive financial performance in the quarter ended March 2024, with some areas that need attention. Investors are advised to do their own research and analysis before making any investment decisions.