Khandwala Securities Records Positive Net Sales and PAT, But Concerns Remain for Operating Profit and Non-Operating Income

Khandwala Securities, a microcap finance company, has recently announced its financial results for the quarter ending September 2024. The company has shown positive performance in terms of net sales and profit after tax (PAT) for the half-yearly period. However, there are some concerns regarding the operating profit and non-operating income for the quarter.

According to the financial report, Khandwala Securities has recorded a growth of 60.34% in net sales for the half-yearly period, which is a positive sign for the company. The PAT for the same period has also increased to Rs 0.72 crore, surpassing the previous 12-month period. This indicates a strong financial performance for the company in the near term.

On the other hand, the operating profit for the quarter has been the lowest in the last five quarters, standing at Rs -4.50 crore. This is a cause for concern as the near term trend for operating profit is negative. Similarly, the profit before tax (PBT) has also been the lowest in the last five quarters, at Rs -4.58 crore. The company's non-operating income, which is 2,091.30% of PBT, is also a concern as it is not a sustainable business model. The non-operating income for the quarter has also been the highest in the last five quarters, at Rs 4.81 crore.

Based on these financial results, MarketsMOJO has given a 'Strong Sell' call for Khandwala Securities' stock. Investors should carefully consider these factors before making any investment decisions.