Narmada Gelatine's Financial Results Show Mixed Performance, MarketsMOJO Issues 'Sell' Call.

Nov 06 2024 04:55 PM IST
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Narmada Gelatine, a microcap company in the chemicals industry, has shown a flat performance in its recent financial results. Despite this, the company's score has improved and it has a strong reputation in the market. MarketsMojo has given a 'Sell' call due to declining short term liquidity and slower debt settlement, but the company's strong operating cash flow and potential for growth should also be considered.

Despite the mixed financial results, MarketsMOJO has given a 'Sell' call for Narmada Gelatine's stock. This could be due to the company's declining short term liquidity and slower pace of settling its debtors. However, Narmada Gelatine has shown improvement in its operating cash flow, which could be a positive sign for the company's future performance.

Narmada Gelatine is a microcap company in the chemicals industry. It specializes in the production of gelatin, a key ingredient used in various industries such as pharmaceuticals, food and beverage, and cosmetics. The company has been in operation for several years and has established a strong reputation in the market.

The recently declared financial results for the quarter ending September 2024 show a flat performance for Narmada Gelatine. However, in the last three months, the company's score has improved from 0 to 1. This could indicate a potential turnaround for the company in the near future.

One of the key strengths of Narmada Gelatine is its strong operating cash flow. In the last three years, the company has consistently generated high cash revenues from its business operations. This is a positive sign for the company's financial stability and growth potential.

On the other hand, the company's cash and cash equivalents have been declining in the last six half yearly periods. This could be a cause for concern as it indicates a deteriorating short term liquidity for Narmada Gelatine. Additionally, the company's debtors turnover ratio has also decreased in the last five half yearly periods, suggesting a slower pace of settling its debtors.

In light of these financial results, MarketsMOJO has given a 'Sell' call for Narmada Gelatine's stock. This could be due to the company's declining short term liquidity and slower pace of settling its debtors. However, investors should also consider the company's strong operating cash flow and its potential for future growth in the gelatin industry.
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