MarketsMOJO Declares 'Sell' Call for Majestic Auto Stock Despite Positive Financial Performance

MarketsMOJO, a leading financial analysis platform, has recently declared a 'Sell' call for Majestic Auto's stock. This comes after the company's financial results for the quarter ending June 2024 were announced on August 8, 2024.

Despite the negative stock call, Majestic Auto has shown a very positive financial performance in the quarter. The company's score has improved from 24 to 21 in the last 3 months. This is a result of various factors that are working in the company's favor.

One of the key highlights of the financial results is the significant growth in Profit After Tax (PAT) which has increased by 323.1% year on year. The company has also been able to improve its inventory turnover ratio, indicating that it is able to sell its inventory at a faster rate. Additionally, the net sales have also shown a positive trend, growing by 20.57% year on year.

Majestic Auto's cash and cash equivalents have also seen a significant increase in the last six half yearly periods, indicating an improvement in short term liquidity. The company has also been able to reduce its debt and maintain a low debt-equity ratio, which is a positive sign for investors.

However, there are some areas that need improvement. The non-operating income for the quarter is 94.39% of the Profit Before Tax (PBT), which suggests that the company's income from non-business activities is high. This may not be a sustainable business model in the long run.

Overall, Majestic Auto's financial results for the quarter ending June 2024 have shown a positive trend, with some areas that need attention. Investors should keep a close eye on the company's performance in the coming months.