Munjal Auto Industries Reports Flat Q2 Performance, PAT Shows Growth
Munjal Auto Industries, a smallcap auto ancillary company, has reported a flat performance in the second quarter of fiscal year 2024-2025. While the company's PAT has shown a significant growth, there are concerns regarding increased interest cost and reliance on non-operating income. Investors are advised to hold their positions and monitor future financial reports.
Munjal Auto Industries, a smallcap auto ancillary company, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.
According to the financial report, Munjal Auto Industries has seen a flat performance in the second quarter of the fiscal year 2024-2025. The company's score has fallen from 11 to 4 in the last three months.
However, there are some positive aspects to the company's financials. The Profit After Tax (PAT) for the half-yearly period has shown a growth of 78.95% year on year, reaching Rs 42.34 crore. This indicates a positive trend in the near term.
On the other hand, there are some areas that need improvement. The company's interest cost has increased by 12.37% quarter on quarter, reaching the highest in the last five quarters at Rs 7.63 crore. This suggests that the company has taken on more borrowings.
Additionally, the company's non-operating income for the quarter is 59.07% of the Profit Before Tax (PBT). This indicates that a significant portion of the company's income is coming from non-business activities, which may not be a sustainable business model.
Furthermore, Munjal Auto Industries has a low Dividend Payout Ratio (DPR) of 0.00% for the last five years. This means that the company is distributing a lower proportion of its profits as dividends.
Overall, Munjal Auto Industries has shown a mixed performance in the recent quarter. Investors are advised to hold their positions and keep an eye on the company's future financial reports.
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