Kisan Mouldings' Q1 Financial Results Show Positive Performance and Growth

Kisan Mouldings, a microcap company in the plastic products industry, has recently declared its financial results for the quarter ending June 2024. According to the data released on July 25, 2024, the company has shown positive performance in this quarter, with a score of 14 compared to 7 in the previous quarter.

One of the key highlights of the financial report is the significant growth in Profit After Tax (PAT) for the quarter, which has increased by 143.5% to Rs 3.00 crore compared to the average PAT of the previous four quarters at Rs -6.90 crore. This shows a positive trend in the company's near-term profitability.

Kisan Mouldings has also shown improvement in its ability to manage interest payments, with the Operating Profit to Interest ratio being the highest in the last five quarters at 23.10 times. The company has also been able to sell its inventory faster, with the Inventory Turnover Ratio being the highest at 6.98 times in the last five half-yearly periods.

The company's Operating Profit (PBDIT) for the quarter is also at its highest in the last five quarters at Rs 4.62 crore, indicating a positive trend in its near-term operating profitability. The Operating Profit Margin has also improved, reaching its highest at 6.77% in the last five quarters, showcasing the company's efficiency.

Kisan Mouldings has also shown improvement in its short-term liquidity, with the Cash and Cash Equivalents being the highest at Rs 35.52 crore in the last six half-yearly periods. The Debtors Turnover Ratio has also improved, reaching its highest at 9.78 times in the last five half-yearly periods, indicating that the company has been able to settle its debtors faster.

However, there are some areas of concern for Kisan Mouldings, such as the decline in Net Sales for the half-yearly period, which has decreased by -21.80% Year on Year (YoY). The Debt-Equity Ratio has also increased in the last five half-yearly periods, indicating that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Based on the financial data for the quarter ending June 2024, MarketsMOJO has given a 'Sell' call for Kisan Mouldings' stock. Investors are advised to carefully consider the company's financial performance before making any investment decisions.