Majestic Auto Reports Strong Profit Growth Amid Concerns Over Business Sustainability in August 2025

Majestic Auto, a microcap company in the diversified commercial services industry, has recently reported its financial results for the quarter ending June 2025. The results, declared on August 8, 2025, indicate notable shifts in the company's financial metrics.
The company's profit before tax (PBT) for the quarter reached Rs 2.55 crore, reflecting a significant year-on-year growth. Additionally, the operating cash flow has reached its highest level at Rs 99.72 crore, demonstrating consistent growth over the past three years. The profit after tax (PAT) also marked a high of Rs 13.11 crore, with a positive year-on-year growth rate. Furthermore, earnings per share (EPS) stood at Rs 12.61, indicating enhanced profitability for shareholders.

However, there are areas of concern. Non-operating income constituted a substantial portion of the PBT, raising questions about the sustainability of the business model. Additionally, the debtors turnover ratio has reached its lowest point in recent periods, suggesting a slowdown in the company's ability to settle its debts.

In light of these developments, Majestic Auto has experienced an adjustment in its evaluation, with its score reflecting a notable change over the past three months.

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