Om Infra's Financial Results Show Mixed Performance, Investors Advised to Hold Position

Om Infra, a smallcap engineering company, recently declared its financial results for the quarter ending March 2024. The stock call by MarketsMOJO for Om Infra is 'Hold'.

According to the financials, Om Infra has seen a negative performance in the quarter, with a score of -11 compared to -9 in the previous quarter. However, there are some positive aspects to the company's financials.

One of the strengths of Om Infra is its inventory turnover ratio, which has been consistently growing each half year in the last five periods. The company has been able to sell its inventory at a faster rate, with the highest ratio of 2.44 times in the last half year.

Another positive aspect is the debt-equity ratio, which has been consistently decreasing in the last five half yearly periods. This shows that the company has been reducing its borrowing in comparison to its equity capital.

However, there are some areas of concern for Om Infra. The net sales for the quarter have fallen by -39.1% compared to the average net sales of the previous four quarters. This indicates a negative trend in the near term.

The interest cost for the company has also increased by 48.45% in the last half yearly period, which signifies increased borrowings. The profit after tax (PAT) has also seen a negative trend, with a growth of -29.00% year on year.

In the last five quarters, the net sales have been the lowest at Rs 169.49 crore, indicating a negative trend in the near term. The profit before tax less other income (PBT) for the quarter has also fallen by -6.1% compared to the average PBT of the previous four quarters.

Overall, while Om Infra has some strengths in its financials, there are also some areas of concern. Investors are advised to hold their position in the company's stock and monitor its performance closely.