Modern Shares reports improved profitability but declining liquidity in Q2 2024

Modern Shares & Stockbrokers, a microcap finance company, 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, Modern Shares has shown a flat performance in the second quarter of the fiscal year 2024-25. However, there has been an improvement in the company's score, which has increased from 1 to 4 in the last three months.

The company's operating profit (PBDIT) for the quarter was the highest in the last five quarters at Rs 0.27 crore. The near-term trend for operating profit is positive. Similarly, the profit before tax less other income (PBT) was also the highest in the last five quarters at Rs 0.26 crore, with a positive trend in the near term. The profit after tax (PAT) for the quarter was also the highest in the last five quarters at Rs 0.19 crore, with a positive trend in the near term. This shows that the company has been able to increase its profitability and create higher earnings for its shareholders.

However, the company's cash and cash equivalents for the half-yearly period were the lowest in the last six periods at Rs 3.96 crore. This indicates a deterioration in short-term liquidity.

Overall, Modern Shares has shown a mixed performance in the recent quarter, with positive trends in profitability but a decline in short-term liquidity. Investors should carefully consider these factors before making any investment decisions.