Medicamen Biotec's Q4 net sales reach record high, but PBT and PAT show decline

Medicamen Biotec, a microcap pharmaceutical company, recently announced its financial results for the quarter ending December 2023. The company's net sales for the quarter were at a record high of Rs 46.50 crore, showing a growth of 30.69% year on year. This is the fifth consecutive quarter where the company has seen a growth in net sales, indicating a positive trend in the near term.

However, the company's profit before tax (PBT) has fallen by -32.03% year on year, and the profit after tax (PAT) has also shown a decline of -51.90% year on year. This negative trend in PBT and PAT is a cause for concern for investors.

One of the key factors contributing to the decline in PBT and PAT is the company's inventory turnover ratio, which has fallen to a low of 2.84 times. This means that the company's pace of selling inventory has slowed down, which could impact its profitability in the future.

Despite these challenges, Medicamen Biotec has shown a significant improvement in its overall financial score, which has improved from -12 to -5 in the last three months. This indicates that the company is taking steps to address its financial performance and improve its overall standing in the market.

In light of these financial results, MarketsMOJO has given a 'Sell' call for Medicamen Biotec's stock. Investors should carefully consider these factors before making any investment decisions.