KRBL's Q1 Financial Results Show Significant Decline, MarketsMOJO Gives 'Sell' Call

KRBL, a midcap company in the rice and rice processing industry, recently declared its financial results for the quarter ending June 2024. However, the results have not been favorable, with a score of -22, a significant decrease from the previous quarter's score of -13.

The company's profit before tax (PBT) has fallen by 47.2% to Rs 92.29 crore, compared to the average PBT of the previous four quarters, which was Rs 174.71 crore. This trend is expected to continue in the near term. Similarly, the profit after tax (PAT) has also decreased by 41.9% to Rs 86.56 crore, compared to the average PAT of the previous four quarters, which was Rs 148.97 crore.

The net sales for the quarter have also seen a decline of 10.9% to Rs 1,199.18 crore, compared to the average net sales of the previous four quarters, which was Rs 1,345.98 crore. This trend is also expected to continue in the near term.

The company's operating profit (PBDIT) has also seen a decline, reaching its lowest at Rs 117.23 crore in the last five quarters. The operating profit margin has also decreased to its lowest at 9.78%, indicating a deterioration in the company's efficiency.

The earnings per share (EPS) have also decreased to its lowest at Rs 3.78 in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. Additionally, the company's cash and cash equivalents have also decreased to its lowest at Rs 30.21 crore in the last six half-yearly periods, indicating a deteriorating short-term liquidity.

Based on these financial results, MarketsMOJO has given a 'Sell' call for KRBL's stock. The company's performance in the quarter ending June 2024 has been very negative, and the near-term trend is expected to continue in a similar direction. Investors should carefully consider these factors before making any investment decisions.