Murudeshwar Ceramics Reports Flat Performance, Positive Trends in Operating Profit and Cash Position

Inventory Turnover Ratio- Half Yearly: At 3.32 times has Deteriorated from previous Half yearly period.Inventory days have increased which may indicate slow-moving or obsolete inventory.

Murudeshwar Ceramics, a microcap company in the ceramics and allied industry, has recently announced its financial results for the quarter ending June 2024. The company has reported a flat performance for the quarter, with a score of 3 compared to -11 in the previous quarter.

Despite the flat performance, there are some positive aspects to the company's financials. The operating profit (PBDIT) for the quarter was the highest in the last five quarters at Rs 8.19 crore, indicating a positive trend in the near term. Similarly, the profit after tax (PAT) was also the highest in the last five quarters at Rs 2.01 crore, with a positive trend in the near term. This shows that the company has been able to improve its profitability and create higher earnings for its shareholders.

The company also has a strong cash position, with cash and cash equivalents at Rs 14.39 crore in the last six half-yearly periods. This indicates an improvement in short-term liquidity. Additionally, the debtors turnover ratio has also improved, with the company being able to settle its debtors faster.

However, there are some areas of concern for Murudeshwar Ceramics. The interest cost has grown by 29.16% in the last half-yearly period, indicating increased borrowings. The inventory turnover ratio has also deteriorated, with inventory days increasing, which may suggest slow-moving or obsolete inventory.

Overall, MarketsMOJO has given a 'Hold' call for Murudeshwar Ceramics based on its financial performance for the quarter ending June 2024. Investors should closely monitor the company's performance in the coming quarters to make informed decisions.