Nirav Commercial Reports Mixed Financial Results for Q2 FY25

Nirav Commercial, a microcap company in the aluminium and aluminium products industry, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Nirav Commercial has seen a negative performance in the second quarter of the fiscal year 2024-2025, with a score of -8 compared to -7 in the previous quarter. However, there are some positive aspects to the company’s financials.

The company’s Profit After Tax (PAT) for the half-yearly period is higher at Rs 0.02 crore compared to the preceding 12-month period of Rs -1.44 crore. This indicates a growth in profits for the company in the first half of the fiscal year.

On the other hand, there are some areas of concern for Nirav Commercial. The company’s Operating Cash Flow for the year is at its lowest at Rs 3.75 crore and has been falling each year for the past three years. This indicates a decline in cash revenues from business operations.

The Net Sales for the nine-month period have also shown a negative trend, with a growth rate of -24.59% compared to the previous year. Additionally, the company’s Short Term liquidity is deteriorating as seen from its Cash and Cash Equivalents, which are at their lowest at Rs 0.08 crore in the last six half-yearly periods.

Another concerning factor is the Debtors Turnover Ratio, which is at its lowest at 3.53 times in the last five half-yearly periods. This suggests that the company’s pace of settling its debtors has slowed down.

Overall, Nirav Commercial’s financial performance for the quarter ending September 2024 has been negative, with some areas of improvement and some areas of concern. Investors are advised to carefully consider these factors before making any investment decisions.