Nitin Castings reports strong Q2 results, with PAT and EPS on the rise

Nitin Castings, a microcap company in the castings and forgings industry, has recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is 'Hold'.

According to the financials, Nitin Castings has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 12 to 7 in the last three months.

Some key highlights from the financial report include a 64.75% year-on-year growth in Profit After Tax (PAT) at Rs 12.37 crore. The company has also generated the highest operating cash flow of Rs 17.40 crore in the last three years, indicating a strong revenue stream from its business operations.

Additionally, Nitin Castings has shown an increase in its Earnings per Share (EPS) at Rs 8.17 in the last five quarters, indicating a rise in profitability and higher earnings for shareholders. The company has also surpassed its sales from the previous twelve months in just nine months, with a PAT of Rs 12.37 crore.

On the other hand, the company's non-operating income is 35.73% of its Profit Before Tax (PBT), which may not be a sustainable business model. The company's short-term liquidity has also deteriorated, with its cash and cash equivalents at the lowest in the last six half-yearly periods at Rs 0.38 crore.

Overall, Nitin Castings has shown positive financial performance in the quarter ending September 2024, with strong growth in PAT and EPS. However, the company's non-operating income and short-term liquidity may be areas of concern. Investors are advised to hold their position in the stock, as recommended by MarketsMOJO.