Mangalam Cement's Q2 FY24-25 financials show mixed results, with concerns and improvements.

Mangalam Cement, a smallcap company in the cement industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is 'Sell'.

The company has seen a negative financial performance in the second quarter of FY24-25, with a score of -15 compared to -5 in the previous quarter. However, there are some positive aspects in the financials for the company.

Mangalam Cement has the highest cash and cash equivalents of Rs 160.39 crore in the last six half-yearly periods, indicating an improvement in short-term liquidity. The company has also been distributing higher dividends from its profits, with the highest dividend per share (DPS) of Rs 1.50 in the last five years.

On the other hand, there are some areas of concern in the financials of Mangalam Cement. The profit before tax less other income (PBT) for the quarter has fallen by -169.6% compared to the average PBT of the previous four quarters. The profit after tax (PAT) has also seen a decline of -78.9% compared to the average PAT of the previous four quarters. The net sales for the quarter have fallen by -14.8% compared to the average net sales of the previous four quarters.

The company's ability to manage interest payments has also deteriorated, with the lowest operating profit to interest ratio in the last five quarters. The non-operating income for the quarter is also high, at 280.77% of the PBT, indicating a reliance on non-business activities for income.

The earnings per share (EPS) for the quarter is also at its lowest in the last five quarters, showing a decline in profitability and lower earnings for shareholders. Overall, the near-term trend for Mangalam Cement's financials is negative, with a decline in PBT, PAT, and net sales.