Lancor Holdings Reports Positive Financial Performance in Q2 FY25 Despite 'Sell' Call

Oct 26 2024 01:01 PM IST
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Lancor Holdings, a microcap company in the construction and real estate industry, has reported positive financial results for the quarter ending September 2024. Despite a 'Sell' call from MarketsMojo, the company's Profit Before Tax and Net Sales have seen significant growth, indicating a strong near-term trend. However, concerns over decreasing Operating Cash Flow and increasing interest costs should also be considered by investors.

Lancor Holdings, a microcap company in the construction and real estate industry, has recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.


Despite the negative stock call, Lancor Holdings has shown very positive financial performance in the quarter. The company’s Profit Before Tax less Other Income (PBT) has grown by 85.6% compared to the average of the previous four quarters. This indicates a strong near-term PBT trend for the company.


The company’s Net Sales have also seen a significant growth of 57.4% compared to the average of the previous four quarters. This is the highest net sales in the last five quarters, showing a positive near-term sales trend for Lancor Holdings.


In terms of profitability, the company has shown a positive trend with its Operating Profit (PBDIT) and Profit Before Tax less Other Income (PBT) being the highest in the last five quarters. The company’s Profit After Tax (PAT) has also seen a positive trend, with the highest value in the last five quarters.


Lancor Holdings has also been creating higher earnings for its shareholders, with the highest Earnings per Share (EPS) in the last five quarters. The company has also been distributing a higher proportion of its profits as dividends, with the highest Dividend Payout Ratio (DPR) in the last five years.


However, there are some areas of concern for Lancor Holdings. The company’s Operating Cash Flow has been consistently decreasing in the last three years, indicating a decline in cash revenues from business operations. Additionally, the company’s interest costs have increased by 19.29% compared to the previous quarter, which could be a result of increased borrowings.


Overall, Lancor Holdings has shown strong financial performance in the quarter ending September 2024, with positive trends in key areas. However, investors should also consider the areas of concern before making any investment decisions.


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