Khadim India's Q3 financial results show mixed performance, with concerns over debt and non-operating income.

Khadim India, a leading player in the consumer durables industry, recently announced its financial results for the quarter ended December 2023. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financials, Khadim India has seen a negative performance in the quarter, with a score of -11, which has improved from -17 in the last three months. However, there are some positive aspects to the company's performance.

The operating profit margin for the quarter was the highest in the last five quarters, at 11.65%. This indicates an improvement in the company's efficiency. Additionally, the profit before tax less other income (PBT) for the quarter was the highest in the last five quarters, at Rs 0.69 crore. This shows a positive trend in the near term for PBT.

On the other hand, there are some areas of concern for Khadim India. The profit after tax (PAT) for the half-yearly period has shown a decline of 63.31% year on year, at Rs 3.61 crore. The trend for PAT in the near term is also negative. The debtors turnover ratio for the half-yearly period is at its lowest in the last five periods, at 3.23 times, and has fallen each half-year. This indicates a slowdown in the company's pace of settling its debtors.

Furthermore, the non-operating income for the quarter is 72.06% of the PBT, which is a cause for concern as it shows a high reliance on non-business activities. The debt-equity ratio for the half-yearly period is also at its highest in the last five periods, at 1.42 times. This suggests that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Overall, while Khadim India has shown some positive aspects in its financial performance, there are also some red flags that investors should consider before making any investment decisions.