Kothari Products Reports Negative Financial Results, Receives 'Strong Sell' Rating

Nov 14 2024 09:05 PM IST
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Kothari Products, a microcap trading company, has reported a negative financial performance for the quarter ending September 2024. The company's profit before tax and after tax have significantly decreased, with a decline in operating cash flow and profit margin. This has resulted in a 'Strong Sell' rating by MarketsMojo.

Kothari Products, a microcap trading company, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO.

According to the financial report, Kothari Products has seen a negative performance in the second quarter of the fiscal year 2024-2025. The company's score has fallen from 3 to -13 in the last three months.

The profit before tax (PBT) less other income for the quarter was at Rs -127.01 crore, a significant decrease of -32876.8% compared to the average PBT of the previous four quarters, which was Rs 0.39 crore. This indicates a very negative trend in the near term for PBT.

Similarly, the profit after tax (PAT) for the quarter was at Rs -120.12 crore, a decrease of -1944.5% compared to the average PAT of the previous four quarters, which was Rs 6.51 crore. The company's operating cash flow has also been on a decline for the past three years.

The operating profit (PBDIT) for the quarter was at its lowest at Rs -128.47 crore in the last five quarters, indicating a negative trend in the near term. The operating profit margin for the quarter was also at its lowest at -48.32%, showing a deterioration in the company's efficiency.

The earnings per share (EPS) for the quarter was at its lowest at Rs -40.25, indicating a decline in profitability and lower earnings for shareholders. Overall, Kothari Products has shown a negative financial performance in the recent quarter, leading to a 'Strong Sell' rating by MarketsMOJO.
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