Majestic Auto's Financial Performance Declines, MarketsMOJO Issues 'Strong Sell' Call

Despite the negative financial performance, Majestic Auto remains a strong player in the miscellaneous industry. The company has consistently generated high operating cash flow and has been reducing its debt-to-equity ratio. However, the recent quarter has seen a significant decline in net sales, profit before tax, and profit after tax. This has led to a 'Strong Sell' call by MarketsMOJO.

The company's financial results for the quarter ending September 2024 have been declared on November 6, 2024. The operating cash flow for the year has been the highest at Rs 78.96 crore and has shown growth in the last three years. On the other hand, the net sales for the quarter have fallen by 59.22% year on year, indicating a negative trend in the near term.

The profit before tax, less other income, has also seen a significant decline of 94.42% year on year, while the profit after tax has fallen by 67.2% year on year. This is a cause for concern for investors and has resulted in a 'Strong Sell' call by MarketsMOJO.

It is worth noting that the company's non-operating income is 86.27% of the profit before tax, indicating a high reliance on non-business activities. This may not be a sustainable business model in the long run.

In conclusion, while Majestic Auto has shown strong performance in terms of operating cash flow and debt-to-equity ratio, the recent quarter has seen a decline in key financial indicators. Investors should carefully consider these factors before making any investment decisions.