Lambodhara Textiles Reports Positive Financial Performance in Q2 2024, Investors Advised to Hold Stock

Lambodhara Textiles, a microcap company in the textile industry, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Lambodhara Textiles has shown a very positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 4 to 20 in the last three months.

One of the key factors contributing to this positive performance is the increase in Profit After Tax (PAT) which has grown by 165% to Rs 3.18 crore compared to the average PAT of the previous four quarters which was Rs 1.20 crore. This trend is expected to continue in the near term.

The company's Net Sales have also shown a positive growth of 21.8% to Rs 60.92 crore compared to the average Net Sales of the previous four quarters which was Rs 50.01 crore. This indicates a positive sales trend in the near term.

Lambodhara Textiles has also shown an increase in its Operating Profit (PBDIT) which has reached its highest at Rs 7.84 crore in the last five quarters. The company's efficiency has also improved as seen in the Operating Profit Margin which is at its highest at 12.87%.

The company's Profit Before Tax less Other Income (PBT) has also shown a positive trend, reaching its highest at Rs 2.43 crore in the last five quarters. This indicates a positive outlook for the company's profitability.

However, there are some areas that need improvement for Lambodhara Textiles. The Non Operating Income, which is 38.32% of the Profit Before Tax (PBT), is a cause for concern as it indicates a high income from non-business activities which may not be sustainable in the long run.

The Debtors Turnover Ratio, which is the pace at which the company settles its debtors, has also slowed down in the last five half yearly periods. Additionally, the company's Non Operating Income has increased significantly in the last five quarters, which may not be sustainable.

Overall, Lambodhara Textiles has shown a positive financial performance in the second quarter of the fiscal year 2024-2025. However, the company needs to address the areas of concern in order to sustain its growth in the long term. Investors are advised to hold their stock for now and keep an eye on the company's future financial reports.