Medi Caps' Financial Results Show Mixed Performance

Medi Caps, a microcap pharmaceutical company, recently announced its financial results for the quarter ended September 2023. The company's net sales for the quarter saw a decline of 5.49% compared to the previous quarter, while its consolidated net profit showed a significant growth of 110.81%.

However, despite the improvement in net profit, MarketsMOJO has given a 'Strong Sell' call for Medi Caps' stock. The company's operating profit (PBDIT) excluding other income also showed a positive growth of 167.12% compared to the previous quarter.

On the other hand, the company's interest expenses have been consistently low in the last few periods. This has led to an improvement in the operating profit margin (excluding other income) for the quarter ended September 2023.

Despite the positive growth in some areas, Medi Caps' overall financial performance for the quarter has been deemed as very negative. The company's score has improved slightly from -30 to -29 in the last three months, but there are still areas that need improvement.

The company's net sales have been consistently falling in the last five quarters, with a decline of 44.4% in the quarter ended September 2023. Similarly, the profit before tax (PBT) has also shown a significant decline of 89.2% compared to the average PBT of the previous four quarters.

Moreover, the company's operating cash flow has been decreasing each year in the last three years, indicating a decline in cash revenues from business operations. The debtors turnover ratio has also been consistently falling, showing a slower pace of settling debts.

In addition, the company's cash and cash equivalents have been at its lowest in the last six half-yearly periods, indicating a deteriorating short-term liquidity. Overall, while there have been some positive improvements in Medi Caps' financials, there are still areas that need attention for the company to see a significant turnaround.