Orient Beverages Reports Positive Q2 Results, But Receives 'Strong Sell' Rating from MarketsMOJO

Orient Beverages, a microcap FMCG company, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO.

According to the financial report, Orient Beverages has shown positive performance in the second quarter of the fiscal year 2024-2025. However, the company's overall score has decreased from 17 to 7 in the last three months.

One of the key factors contributing to the positive performance is the company's high operating cash flow, which has been consistently growing over the past three years. This indicates that Orient Beverages has been able to generate higher revenues from its business operations.

On the other hand, the company's profit after tax (PAT) for the quarter has fallen by 84.1% compared to the average PAT of the previous four quarters. This is a concerning trend for the company's near-term financial outlook.

Another red flag in the financial report is the high non-operating income, which accounts for 276.71% of the profit before tax (PBT). This suggests that Orient Beverages is relying heavily on non-business activities for its income, which may not be sustainable in the long run.

In conclusion, while Orient Beverages has shown positive financial performance in the recent quarter, there are some concerning factors that investors should take note of. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO, indicating a cautious approach towards investing in this microcap FMCG company.