Khadim India's Q3 financials show mixed results, with positive growth in key areas

Khadim India, a microcap company in the consumer durables industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for Khadim India is 'Sell'.

The company's financial performance for the quarter was flat, with a score of 2 compared to -12 in the previous quarter. However, there are some positive aspects to the financials. The Profit Before Tax less Other Income (PBT) has shown a significant growth of 391.30% year on year, and the near term trend for PBT is positive. The company's ability to manage interest payments has also improved, with the Operating Profit to Interest ratio being the highest in the last five quarters. The net sales for the quarter were also the highest in the last five quarters, indicating a positive sales trend. The Operating Profit (PBDIT) and Operating Profit Margin have also shown improvement, with the latter being the highest in the last five quarters. The company's profitability has also increased, with the highest Profit After Tax (PAT) and Earnings per Share (EPS) in the last five quarters.

On the other hand, there are some areas of concern for Khadim India. The Non Operating Income for the quarter is 57.86% of the Profit Before Tax, indicating a high reliance on non-business activities. The Debtors Turnover Ratio for the half yearly period is the lowest in the last five periods, suggesting a slowdown in the company's pace of settling its debtors. However, the company has been reducing its borrowing as compared to equity capital, with the Debt-Equity Ratio being the lowest in the last five half yearly periods.

Overall, Khadim India's financial performance for the quarter has been mixed, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.