Man Infraconstruction's Q2 FY25 Financial Results Show Negative Trend, Investors Advised to Take Note

Nov 18 2024 10:00 AM IST
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Man Infra's operating cash flow and debt-equity ratio are positive aspects, but the decline in PBT, PAT, net sales, operating profit, and EPS are concerning. MarketsMojo has given a 'Strong Sell' call for the stock. Man Infraconstruction, a midcap company in the construction and real estate industry, has reported a negative performance in the quarter ending September 2024. While the company's operating cash flow and debt-equity ratio are positive, there are concerning factors such as a decline in PBT, PAT, net sales, operating profit, and EPS. MarketsMojo has given a 'Strong Sell' call for the stock.

Man Infraconstruction, a midcap company in the construction and real estate industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is ‘Strong Sell’.

According to the financials, Man Infra has seen a negative performance in the quarter, with a score of -13 compared to 2 in the previous quarter. However, there are some positive aspects to the company’s financials. The operating cash flow for the year is the highest at Rs 572.59 crore and has been growing consistently over the past three years. This indicates that the company has been generating higher cash revenues from its business operations. Additionally, the debt-equity ratio for the half-yearly period is the lowest at 0.01 times and has been decreasing over the past five half-yearly periods. This shows that the company has been reducing its borrowing in comparison to its equity capital.


On the other hand, there are some concerning factors in the financials as well. The profit before tax less other income (PBT) for the quarter has fallen by -53.6% compared to the average PBT of the previous four quarters. The same trend is seen in the profit after tax (PAT) and net sales, which have fallen by -39.7% and -15.9% respectively. The operating profit (PBDIT) for the quarter is also the lowest in the last five quarters, indicating a negative trend. The operating profit margin has also decreased to its lowest at 11.97%, showing a decline in the company’s efficiency. The non-operating income is also high at 47.06% of the PBT, which is not a sustainable business model. Lastly, the earnings per share (EPS) for the quarter is the lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.


Overall, the financial results for the quarter ending September 2024 for Man Infraconstruction show a negative trend. Investors are advised to take note of these factors and make informed decisions.


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