Mukesh Babu Fin. Reports Flat Performance in Q2, Positive Trend in PBT and PAT

Nov 14 2024 05:36 PM IST
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Mukesh Babu Financial Services, a microcap finance company, reported a flat performance in the second quarter of fiscal year 2024-25. The company's PBT has increased by 72.0% and PAT is higher compared to the previous year. However, there are concerns such as a decrease in net sales and low operating cash flow and profit margin. Investors are advised to carefully analyze the company's financials before making any investment decisions.

Mukesh Babu Financial Services, 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, Mukesh Babu Fin. has shown a flat performance in the second quarter of the fiscal year 2024-25. The company's score has decreased from 7 to -3 in the last three months.

However, there are some positive aspects to the company's financials. The Profit Before Tax (PBT) has grown by 72.0% to Rs 3.26 crore compared to the average PBT of the previous four quarters, which was Rs 1.90 crore. This indicates a very positive trend in the near term. Additionally, the Profit After Tax (PAT) for the half-yearly period is higher at Rs 6.37 crore compared to the previous 12-month period of Rs 5.93 crore.

On the other hand, there are some areas of concern for Mukesh Babu Fin. The Net Sales for the half-yearly period have decreased by -31.34% year on year, standing at Rs 10.47 crore. This indicates a negative trend in the near term. The company's Operating Cash Flow for the last three years is at its lowest, standing at Rs -3.49 crore. This shows a decline in the company's cash revenues from business operations. Additionally, the Operating Profit Margin for the last five quarters is at its lowest, standing at 0.00%. This indicates a deterioration in the company's efficiency.

Overall, Mukesh Babu Financial Services has shown a mixed performance in the recent quarter. While there are some positive aspects, there are also areas of concern that need to be addressed. Investors are advised to carefully analyze the company's financials before making any investment decisions.
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