Modella Woollens shows positive signs in profitability, but concerns remain for investors
Modella Woollens has shown positive signs in profitability with an improved Profit After Tax and Earnings per Share in the quarter ending September 2024. However, the company's Operating Profit and Profit Before Tax less Other Income have been the lowest in the last five quarters, indicating a negative trend. MarketsMojo has given a 'Strong Sell' call for the company's stock.
Despite the flat financial performance in the quarter ending September 2024, Modella Woollens has shown some positive signs in terms of profitability. The company's Profit After Tax (PAT) has improved to Rs -0.01 cr., the highest in the last five quarters. This indicates a positive trend in the near term for the company's profitability.
Similarly, the company's Earnings per Share (EPS) have also increased to Rs -0.11, the highest in the last five quarters. This shows that Modella Woollens has been able to create higher earnings for its shareholders.
However, there are some areas of concern for the company. The Operating Profit (PBDIT) for the quarter has been the lowest in the last five quarters at Rs -0.06 cr. This indicates a negative trend in the near term for the company's operating profit.
Similarly, the Profit Before Tax less Other Income (PBT) has also been the lowest in the last five quarters at Rs -0.06 cr. This shows a negative trend in the near term for the company's overall profitability.
Based on these financial results, MarketsMOJO has given a 'Strong Sell' call for Modella Woollens' stock. Investors should carefully consider these factors before making any investment decisions.
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