Manaksia Coated Metals & Industries Announces Mixed Q2 Results, MarketsMOJO Calls for 'Hold' Rating

Manaksia Coated Metals & Industries, a microcap engineering company, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is 'Hold'. According to the financials, Manaksia Coated has seen a flat performance in the second quarter of FY24-25, with a score of 0 compared to 13 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 21.57 crore and has been growing consistently over the last three years. This indicates that the company has generated higher cash revenues from its business operations. On the other hand, there are some areas of concern for Manaksia Coated based on its September 2024 financials. The profit after tax (PAT) for the quarter is at Rs 1.45 crore, which is a significant decrease of 58.8% compared to the average PAT of the previous four quarters. This shows a negative trend in the near term. The net sales for the quarter are also at its lowest in the last five quarters, with a decrease of 8.2% compared to the average net sales of the previous four quarters. The operating profit (PBDIT) for the quarter is also at its lowest in the last five quarters, indicating a negative trend in the near term. The company's efficiency has also deteriorated, with the operating profit margin at its lowest in the last five quarters. The profit before tax (PBT) less other income for the quarter is also at its lowest in the last five quarters, showing a negative trend in the near term. Additionally, the company's non-operating income is 87.56% of the PBT, which is not a sustainable business model. The cash and cash equivalents for the half-yearly period are also at its lowest in the last six periods, indicating a deteriorating short-term liquidity. Overall, while Manaksia Coated has shown some positive aspects in its financials, there are also some areas of concern that investors should keep in mind. The stock call by MarketsMOJO for the company is 'Hold', indicating a neutral stance.