Megastar Foods' Q2 2024 financials show positive trends, but MarketsMOJO gives 'Strong Sell' call.

Megastar Foods, a microcap company in the FMCG industry, recently declared its financial results for the quarter ending September 2024. According to the data released on November 5, 2024, the company's stock has been given a 'Strong Sell' call by MarketsMOJO.

The financial performance of Megastar Foods for the second quarter of the fiscal year 2024-25 has remained flat, with a score of -3. However, there has been an improvement from the previous quarter's score of -20. Despite this, the company has shown some positive trends in its financials.

One of the key highlights of the financial report is the growth in Profit Before Tax less Other Income (PBT) for the quarter. At Rs 2.07 crore, it has seen a significant increase of 78.1% compared to the average PBT of the previous four quarters, which was Rs 1.16 crore. This indicates a positive trend in the near term for PBT.

Another positive trend is seen in the Net Sales for the quarter, which has reached its highest at Rs 90.00 crore in the last five quarters. This is a growth of 37.9% over the average Net Sales of the previous four quarters, which was Rs 65.25 crore. The company's Operating Profit (PBDIT) has also shown a positive trend, reaching its highest at Rs 4.51 crore in the last five quarters.

On the other hand, the company's Debtors Turnover Ratio for the half-yearly period has been the lowest at 6.76 times in the last five periods. This indicates a slowdown in the company's pace of settling its debtors.

Overall, Megastar Foods has shown some positive trends in its financials for the quarter ending September 2024. However, the company's stock has been given a 'Strong Sell' call by MarketsMOJO, indicating a cautious approach for investors.