Mercantile Ventures Reports Strong Financial Performance in Q2 2024, PAT Increases by 147.7%

Mercantile Ventures, a microcap finance company, has recently announced its financial results for the quarter ending June 2024. The company has shown a very positive performance, with a significant improvement in its financial score from -7 to 22 in the last three months.

One of the key highlights of the quarter is the growth in Profit After Tax (PAT), which has increased by 147.7% year on year, reaching Rs 5.62 crore. This trend is expected to continue in the near term. The company has also seen a positive trend in its Net Sales, with the highest quarterly sales of Rs 16.74 crore in the last five quarters, showing a growth of 22.37% year on year.

Mercantile Ventures has also shown a strong performance in terms of profitability, with the highest quarterly PAT of Rs 5.62 crore in the last five quarters. This has resulted in an increase in Earnings per Share (EPS) to Rs 0.50, indicating higher earnings for shareholders.

The company's short term liquidity has also improved, with the highest Cash and Cash Equivalents of Rs 58.07 crore in the last six half yearly periods. However, there are some areas of concern, such as the high Non Operating Income, which is 106.87% of Profit Before Tax (PBT). This suggests that the company's income from non-business activities is high, which may not be a sustainable business model.

Despite this, MarketsMOJO has given a 'Hold' call for Mercantile Ventures' stock, based on its strong financial performance in the quarter ending June 2024. Investors can keep a close eye on the company's future financial results to make informed decisions.