Manorama Industries Reports Highest Debt to Equity Ratio in Five Quarters

Debt to Equity Ratio - Quarterly: Highest at 1.18 in the last five quarters and Increased by 0.03 (QoQ).High debt to equity ratio indicates higher financial risk for the company. Manorama Industries, a smallcap company in the solvent extraction industry, recently announced its financial results for the quarter ending March 2024. The company's stock has been given a 'Hold' call by MarketsMOJO. According to the financials, Manorama Industries has shown a flat performance in the quarter, with a score of 2 compared to -11 in the previous quarter. However, there are some positive trends that can be seen in the company's performance. The net sales for the quarter were the highest in the last five quarters at Rs 129.33 crore, showing a positive trend in the near term. The net sales have also grown by 20.5% over the average net sales of the previous four quarters, indicating a positive trend in the company's sales. The operating profit (PBDIT) for the quarter was also the highest in the last five quarters at Rs 20.77 crore, with a positive trend in the near term. The profit after tax (PAT) for the quarter was also the highest in the last five quarters at Rs 12.50 crore, with a positive trend in the near term. The PAT has also grown by 33.0% over the average PAT of the previous four quarters. The company's earnings per share (EPS) for the quarter were the highest in the last five quarters at Rs 10.49, indicating an increase in profitability and higher earnings for shareholders. However, there are some areas that are not working in favor of Manorama Industries. The interest cost for the quarter was the highest in the last five quarters at Rs 6.88 crore, showing an increase of 24.41% from the previous quarter. This signifies increased borrowings for the company. The debt to equity ratio for the quarter was also the highest in the last five quarters at 1.18, showing an increase of 0.03 from the previous quarter. This indicates a higher financial risk for the company. Overall, Manorama Industries has shown a mixed performance in the quarter, with some positive trends in sales and profitability, but also some concerns in terms of increased borrowings and financial risk. Investors are advised to hold their position in the company's stock and keep an eye on its future performance.