Kohinoor Foods Announces Mixed Financial Results for Q1 FY25, Investors Urged to Analyze Carefully

Kohinoor Foods, a microcap company in the rice and rice processing industry, recently announced its financial results for the quarter ending March 2024. The results, declared on August 13, have received a ‘Strong Sell’ call from MarketsMOJO.

According to the financials, Kohinoor Foods has seen a negative performance in the quarter, with a score of -6 compared to -1 in the previous three months. However, there are some positive aspects to the company’s performance.

The net sales for the nine-month period ending June 2024 have shown a growth of 22.05% year on year, reaching Rs 71.30 crore. The near-term sales trend is also positive for the company.

On the other hand, the profit after tax (PAT) for the quarter has fallen by 120.9% compared to the average PAT of the previous four quarters. This trend is also reflected in the profit before tax (PBT) less other income, which has fallen by 10.0% compared to the average PBT of the previous four quarters.

The company’s cash and cash equivalents for the half-yearly period are at the lowest in the last six periods, at Rs 0.45 crore. This indicates a deteriorating short-term liquidity situation for Kohinoor Foods.

Moreover, the debt-equity ratio for the half-yearly period is at its highest in the last five periods, at -1.34 times. This suggests that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Overall, the financial results for the quarter ending March 2024 show a mix of positive and negative trends for Kohinoor Foods. Investors are advised to carefully consider these factors before making any investment decisions.