MarketsMOJO Declares 'Sell' Call for Mahaveer Infoway Stock Despite Positive Quarter Results

MarketsMOJO, a leading financial analysis platform, has recently declared a 'Sell' call for Mahaveer Infoway's stock. This decision is based on the company's financial results for the quarter ended December 2023, which were announced on February 14, 2024.

Despite the positive financial performance of the quarter, with a score of 12 out of 15, Mahaveer Infoway's stock has been recommended as a 'Sell' by MarketsMOJO. This is due to certain factors that are not working in the company's favor, as highlighted by the financial data.

On the positive side, Mahaveer Infoway has shown improvement in its inventory turnover ratio, with a record high of 8.49 times in the last five half yearly periods. This indicates that the company has been able to sell its inventory at a faster rate. Similarly, the debtors turnover ratio has also improved, with a record high of 7.49 times in the last five half yearly periods, indicating faster settlement of debtors.

In terms of operating profit and profitability, Mahaveer Infoway has shown positive trends in the near term, with the highest operating profit and profit before tax in the last five quarters. The company has also been able to create higher earnings for its shareholders, with the highest earnings per share in the last five quarters.

However, the company's cash and cash equivalents have been on a decline, with the lowest amount of Rs 0.03 crore in the last six half yearly periods. This indicates a deteriorating short term liquidity for Mahaveer Infoway.

Overall, while Mahaveer Infoway has shown positive financial performance in the quarter ended December 2023, the 'Sell' call by MarketsMOJO suggests that there are certain areas of concern that investors should be aware of.