Nila Infrastructures Reports Outstanding Q2 Results, MarketsMOJO Recommends 'Hold'

Nila Infrastructures, a microcap company in the construction and real estate industry, has recently announced its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is 'Hold'.

According to the financial report, Nila Infrastructures has shown outstanding performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 35 to 30 in the last three months.

One of the key factors contributing to the company's success is its ability to manage interest payments. Nila Infrastructures has recorded the highest operating profit to interest ratio of 5.77 times, which has been growing consistently over the last five quarters. This indicates that the company is effectively managing its interest payments.

The company's profit after tax (PAT) for the quarter has also seen a significant growth of 111.3% year on year, with a positive trend in the near term. Similarly, the net sales for the first half of the fiscal year have grown by 27.57% year on year, indicating a positive sales trend.

Nila Infrastructures has also been successful in reducing its debt and maintaining a low debt-equity ratio of 0.19 times, which has been decreasing over the last five half-yearly periods. Additionally, the company has been able to settle its debtors faster, with the highest debtors turnover ratio of 25.53 times.

In terms of cash flow, Nila Infrastructures has generated the highest operating cash flow of Rs 65.38 crore in the last three years, indicating a strong financial position.

The company's operating profit (PBDIT) for the quarter has also been the highest in the last five quarters, with a positive trend in the near term. Similarly, the operating profit margin has also improved, reaching its highest at 13.61%.

However, one area of concern for Nila Infrastructures is its non-operating income, which accounts for 47.73% of its profit before tax (PBT). This indicates that the company's income from non-business activities is high, which may not be a sustainable business model.

Overall, Nila Infrastructures has shown a strong financial performance in the second quarter of the fiscal year 2024-2025, with positive trends in key areas such as operating profit, profit after tax, and net sales. However, investors are advised to hold their position in the company's stock, as suggested by MarketsMOJO.