Microcap Textile Company Ashima's Q3 Financial Results Show Mixed Performance

Ashima, a microcap textile company, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Ashima's performance for the quarter has been flat, with a score of -1 compared to 26 in the previous quarter. However, there are some positive aspects to the company's financials. The Profit Before Tax (PBT) has shown a significant growth of 996.55% year on year, reaching Rs 15.60 crore. The Profit After Tax (PAT) has also seen a growth of 1335.9% year on year, amounting to Rs 16.19 crore. These figures indicate a positive trend in the near term for Ashima.

On the other hand, there are some areas of concern for the company. The interest cost has increased by 90.44% over the last nine months, indicating a rise in borrowings. The Net Sales for the quarter have fallen by -89.60% year on year, showing a negative trend in the near term. The Debt-Equity Ratio has also been consistently increasing in the last five half-yearly periods, reaching a high of 0.41 times. This suggests that the company is relying more on borrowings to fund its operations, which may lead to a strained liquidity situation.

Furthermore, Ashima's Operating Cash Flow has been declining over the last three years, with the latest figure being the lowest at Rs -38.44 crore. The Net Sales for the quarter have also been the lowest in the last five quarters, indicating a negative trend. The company's profitability has also been declining, with the lowest Earnings per Share (EPS) of Rs -0.62 in the last five quarters. Additionally, the Debtors Turnover Ratio has been the lowest in the last five half-yearly periods, indicating a slower pace in settling debts.

Overall, Ashima's financial performance for the quarter has been mixed, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.