Morarka Finance's Q2 FY25 results show flat performance, but positive signs for investors

Morarka Finance, a microcap finance company, recently declared its financial results for the quarter ending September 2024. According to the data released on October 15, 2024, the company’s performance has remained flat compared to the previous quarter, with a score of -5, down from -4 in the last three months.

Despite this, there are some positive aspects to Morarka Finance’s financials. The company has consistently shown a growth in its Dividend per Share (DPS) over the last five years, with the highest DPS of Rs 6.00. This indicates that the company is distributing higher dividends from its profits, which is a good sign for investors.

In terms of operating profit, Morarka Finance has recorded its highest PBDIT (Profit Before Depreciation, Interest, and Taxes) of Rs 1.08 crore in the last five quarters. The near-term trend for operating profit is also positive, which is a positive indicator for the company’s financial health.

However, there are some areas of concern for Morarka Finance. The company’s Profit After Tax (PAT) for the quarter stands at Rs 0.54 crore, which is a decrease of 31.4% compared to the average PAT of the previous four quarters. This indicates a very negative trend in the near term for the company’s PAT.

Based on these financial results, MarketsMOJO has given a ‘Sell’ call for Morarka Finance’s stock. It is important for investors to carefully analyze the company’s financial performance and make informed decisions.