Negative Performance and Concerns Raised in Ashnoor Textile's Q1 Financial Report

Ashnoor Textile Mills, a microcap company in the textile industry, recently announced its financial results for the quarter ending March 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Ashnoor Textile has seen a negative performance in the quarter, with a score of -9 compared to -2 in the previous three months. This decline can be attributed to various factors, including a significant increase in interest costs and a decrease in operating profit.

The company's interest expenses have grown by 41.72% over the past nine months, indicating increased borrowings. Additionally, the operating profit to interest ratio has reached its lowest point in the last five quarters, indicating a deteriorating ability to manage interest payments.

Furthermore, the company's operating profit (PBDIT) for the quarter was at its lowest in the last five quarters, with a value of Rs 0.52 crore. This suggests a negative trend in the near term. The operating profit margin has also decreased to its lowest point in the last five quarters, indicating a decline in efficiency.

Moreover, the profit before tax (PBT) for the quarter was at its lowest in the last five quarters, with a value of Rs -0.74 crore. This also indicates a negative trend in the near term. The company's non-operating income is also significantly high, at 132.03% of the PBT, which raises concerns about the sustainability of their business model.

Overall, the financial results for the quarter ending March 2024 have not been favorable for Ashnoor Textile Mills. Investors are advised to carefully consider these factors before making any investment decisions.