Natraj Proteins' Financial Results Raise Concerns, 'Sell' Call from MarketsMOJO

Aug 13 2024 09:36 PM IST
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Natraj Proteins, a microcap company in the refined oil and vanaspati industry, has reported a significant decline in profitability and net profit in the last quarter. With a low debt to equity ratio, the company has a strong financial position, but this could limit its potential for growth. MarketsMojo has given a 'Sell' call for the company based on these results.
Operating Profit - Quarterly: At Rs 1.08 cr has Fallen at -85.6 % over average Operating Profit of the previous four quarters of Rs 7.48 Cr. Operating margin at 2.8% vs. average of 15.4%. This indicates a significant decline in profitability for the company.
Net Profit - Quarterly: At Rs -0.05 cr has Declined at -100.2 % over average Net Profit of the previous four quarters of Rs 0.96 Cr. This is a major concern for investors as it shows a significant decrease in the company's bottom line.
Debt to Equity Ratio: At 0.01, the company has a very low debt to equity ratio, indicating a strong financial position. However, this could also mean that the company is not utilizing debt to finance its growth, which could limit its potential for expansion.
Market Capitalization: Natraj Proteins is a microcap company with a market capitalization of Rs 9.55 cr. This makes it a relatively small player in the refined oil and vanaspati industry.
Based on these financial results, MarketsMOJO has given a 'Sell' call for Natraj Proteins. This is due to the decline in sales, profitability, and net profit, as well as the company's small size in the industry. Investors should carefully consider these factors before making any investment decisions regarding Natraj Proteins.
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