Kisan Mouldings' Q4 financials show mixed results, with positive profitability but declining sales

Kisan Mouldings, a microcap company in the plastic products industry, recently declared its financial results for the quarter ending March 2024. According to the report, the company's performance has remained flat in this quarter, with a score of 5 compared to -10 in the previous three months.

However, there are some positive aspects to the financials of Kisan Mouldings. The Profit Before Tax (PBT) has shown a significant growth of 121.1% at Rs 2.44 crore, compared to the average PBT of the previous four quarters at Rs -11.58 crore. The Profit After Tax (PAT) has also seen a growth of 139.8% at Rs 4.12 crore, compared to the average PAT of the previous four quarters at Rs -10.36 crore. This indicates a positive trend in the near term for the company's profitability.

Moreover, Kisan Mouldings has shown a strong ability to manage its interest payments, with an Operating Profit to Interest ratio of 0.75 times, the highest in the last five quarters. The PBT and PAT for this quarter are also the highest in the last five quarters, indicating a positive trend in the near term.

However, there are some areas of concern for the company. The Net Sales for this quarter have fallen by -18.2% at Rs 59.48 crore, compared to the average Net Sales of the previous four quarters at Rs 72.71 crore. The Operating Profit (PBDIT) for this quarter is also the lowest in the last five quarters at Rs -13.11 crore, indicating a negative trend in the near term. The Operating Profit Margin has also decreased to -22.04%, showing a deterioration in the company's efficiency.

Additionally, the Non Operating Income for this quarter is 40.78% of the Profit Before Tax, which is a high percentage and not a sustainable business model.

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