LKP Finance Reports Positive Q1 Results, Stock Receives 'Hold' Rating

LKP Finance, a microcap finance company, recently announced its financial results for the quarter ending June 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, LKP Finance has shown a very positive performance in the quarter, with a score of 22, which is an improvement from the previous score of 14 in the last three months.

One of the key factors contributing to this positive performance is the company's operating cash flow, which has been consistently growing over the last three years and is currently at its highest at Rs 51.87 crore. This indicates that the company has been able to generate higher cash revenues from its business operations.

Another positive aspect is the company's debt-equity ratio, which has been consistently decreasing over the last five half-yearly periods and is currently at its lowest at 0.24 times. This shows that the company has been reducing its borrowing in comparison to its equity capital.

On the other hand, the financial report also highlights some areas that are not working in favor of LKP Finance. The net sales for the quarter have fallen by -7.7% at Rs 20.74 crore, which is lower than the average net sales of the previous four quarters at Rs 22.48 crore. This indicates a negative trend in the near term sales.

Similarly, the profit after tax (PAT) for the quarter has also fallen by -9.1% at Rs 13.51 crore, which is lower than the average PAT of the previous four quarters at Rs 14.86 crore. This also indicates a negative trend in the near term PAT.

Overall, LKP Finance has shown a positive financial performance in the quarter ending June 2024, with some areas of improvement and some areas that need attention. Investors are advised to hold their stocks and keep an eye on the company's future financial reports.