MarketsMOJO Gives 'Strong Sell' Call for Allcargo Gati Stock Based on Financial Results

MarketsMOJO, a leading financial analysis platform, has given a 'Strong Sell' call for Allcargo Gati's stock. This is based on the company's financial results for the quarter ending Jun 2024, which were declared on 2024-08-02.

Despite a positive overall financial performance, with a score of 11 compared to -1 in the previous quarter, there are some areas of concern for Allcargo Gati. The company's operating cash flow has been consistently growing over the past three years, indicating strong revenue generation from its business operations. Additionally, its ability to manage interest payments has improved, with an operating profit to interest ratio of 2.58 times in the last five quarters.

However, there are also some red flags in the company's financials. The operating profit margin, although at its highest in the last five quarters, is still relatively low at 4.72%. The profit after tax has also been negative in the last five quarters, although there is a positive trend in the near term. The company's debt-equity ratio has also been consistently increasing, indicating a higher reliance on borrowing to fund its operations.

On a positive note, Allcargo Gati's short-term liquidity has improved, with a higher amount of cash and cash equivalents in the last six half yearly periods. The company has also been able to settle its debtors faster, with a higher debtors turnover ratio in the last five half yearly periods.

Overall, while Allcargo Gati has shown some positive financial performance in the quarter ending Jun 2024, there are also some areas of concern that investors should be aware of. MarketsMOJO's 'Strong Sell' call for the company's stock suggests caution for potential investors.