Loyal Equipments Reports Positive Q2 Results, MarketsMOJO Recommends 'Hold' on Stock
Loyal Equipments, a microcap company in the engineering industry, has reported positive performance in the second quarter of fiscal year 2024-2025, with a consistently growing operating cash flow. However, net sales and profit after tax have decreased year on year. Despite this, MarketsMojo has recommended a 'Hold' call for the company's stock, indicating potential for future growth.
Loyal Equipments, a microcap company in the engineering industry, has recently announced its financial results for the quarter ending September 2024. The company's stock call has been declared as 'Hold' by MarketsMOJO.
According to the financial report, Loyal Equipments has shown positive performance in the second quarter of the fiscal year 2024-2025. However, the company's overall score has decreased from 17 to 7 in the last three months.
One of the key factors contributing to the positive performance is the company's operating cash flow, which has been consistently growing over the past three years and is currently at its highest at Rs 8.09 crore. This indicates that Loyal Equipments has been able to generate higher cash revenues from its business operations.
On the other hand, the company's net sales for the quarter have fallen by -43.43% year on year, standing at Rs 14.76 crore. This trend is expected to continue in the near term, as indicated by the negative sales trend. Similarly, the profit after tax for the quarter has also decreased by -8.5% year on year, standing at Rs 3.43 crore. The near term trend for PAT is also negative.
Despite the decrease in overall score and negative trends in sales and PAT, MarketsMOJO has recommended a 'Hold' call for Loyal Equipments' stock. This suggests that while the company's financial performance may have been impacted in the recent quarter, it still holds potential for growth in the future. Investors are advised to keep a close watch on the company's performance in the upcoming quarters.
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