Lumax Industries' Q1 Financial Results Show Mixed Performance, MarketsMOJO Gives 'Sell' Call

Lumax Industries, a smallcap company in the auto ancillary industry, has recently declared its financial results for the quarter ending June 2024. According to the latest report, the company's performance has remained flat with a score of -1, a decrease from the previous quarter's score of 1.

Despite this, there are some positive aspects to Lumax Industries' financials. The company's Profit After Tax (PAT) for the quarter has grown by 47.8% year on year, with a very positive trend in the near term. Additionally, the company's Net Sales for the quarter have also shown growth, with a 23.83% increase year on year and a positive trend in the near term. The company's Cash and Cash Equivalents have also seen improvement in the last six half yearly periods, indicating a better short term liquidity situation.

However, there are some areas of concern for Lumax Industries. The company's Operating Profit to Interest ratio has been consistently falling in the last five quarters, indicating a deteriorating ability to manage interest payments. The Inventory Turnover Ratio has also decreased in the last five half yearly periods, showing a slower pace of selling inventory. The company's interest cost has also increased by 11.49% quarter on quarter, signifying higher borrowings. The Debt-Equity Ratio has also reached its highest point in the last five half yearly periods, indicating increased borrowing and a potentially stressed liquidity situation. Additionally, the company's Non Operating Income has seen a significant increase in the last five quarters, which may not be sustainable in the long term.

Based on these financial results, MarketsMOJO has given a 'Sell' call for Lumax Industries' stock. Investors should carefully consider these factors before making any investment decisions.