Mangal Credit & Fincorp Reports Positive Financial Results for Q2 2024

Mangal Credit & Fincorp, a microcap finance company, has recently announced its financial results for the quarter ending September 2024. The company has shown positive performance in the second quarter of the fiscal year 2024-2025, with a score of 9 out of 25, which is an improvement from the previous quarter's score of 25.

According to the financials, the company's Profit After Tax (PAT) for the first half of the year has grown by 36.67% year on year, indicating a positive trend in the near term. The Net Sales for the quarter have also shown a growth of 24.1% compared to the average of the previous four quarters. This suggests a positive sales trend in the near future.

The company's Cash and Cash Equivalents for the first half of the year are at a record high of Rs 29.80 crore, indicating an improvement in short-term liquidity. Additionally, the company has been distributing higher dividends from its profits, with the Dividend per Share (DPS) being the highest in the last five years at Rs 0.60.

However, there are some areas of concern for Mangal Credit based on the financials. The Operating Cash Flow for the year has been consistently falling in the last three years, with the latest figure being at Rs -53.98 crore. This indicates a decline in the company's cash revenues from business operations.

Moreover, the Debt-Equity Ratio for the first half of the year is at its highest in the last five half-yearly periods, standing at 1.29 times. This suggests that the company is relying more on borrowing to fund its operations, which may lead to a stressed liquidity situation.

In conclusion, while Mangal Credit & Fincorp has shown positive financial performance in the recent quarter, there are some areas that need to be monitored closely. Investors should carefully consider these factors before making any investment decisions.