Makers Laboratories Reports Strong Financial Performance in Q3 2024

Makers Laboratories, a microcap pharmaceutical company, has recently announced its financial results for the quarter ending September 2024. The company has shown a very positive performance in this quarter, with its score improving from 6 to 21 in the last 3 months.

One of the key factors contributing to this growth is the company's operating profit (PBDIT), which has been consistently increasing in the last five quarters and reached its highest at Rs 2.18 crore in this quarter. This shows a positive trend in the company's near-term operating profit.

Moreover, Makers Laboratories has also seen an improvement in its operating profit margin, which has reached its highest at 7.37% in this quarter. This indicates an increase in the company's efficiency.

In terms of profitability, the company's profit before tax (PBT) has also shown a positive trend, reaching its highest at Rs 0.46 crore in the last five quarters. Similarly, the profit after tax (PAT) has also increased, reaching its highest at Rs 8.71 crore in this quarter. This shows that the company has been able to create higher earnings for its shareholders.

Another positive aspect of Makers Laboratories' financials is its debtors turnover ratio, which has reached its highest at 6.61 times in the last five half-yearly periods. This indicates that the company has been able to settle its debtors faster.

However, there are some areas that need improvement for Makers Laboratories. One of them is its non-operating income, which is 95.81% of the profit before tax (PBT). This means that the company's income from non-business activities is high, which may not be a sustainable business model.

Additionally, the non-operating income has also increased in the last five quarters, reaching its highest at Rs 10.51 crore. This may not be a sustainable trend for the company.

Overall, Makers Laboratories has shown a positive financial performance in the quarter ending September 2024. However, investors should keep an eye on the company's non-operating income and its sustainability in the long run. Based on the current financials, MarketsMOJO has given a 'Hold' call for the company's stock.