Pasupati Spinning & Weaving Mills Reports Mixed Performance in Q2 2024

Pasupati Spinning & Weaving Mills, a microcap textile company, has recently declared its financial results for the quarter ending September 2024. The stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financial report, Pasupati Spinning & Weaving Mills has shown a flat performance in the second quarter of the fiscal year 2024-2025. However, there has been a slight improvement in the company's score, which has gone from -4 to -1 in the last three months.

One of the positive aspects of the company's financials is its debt-equity ratio, which is at its lowest in the last five half-yearly periods at 1.64 times. This indicates that the company has been reducing its borrowing in comparison to its equity capital.

Moreover, the company's profit after tax (PAT) for the nine-month period ending September 2024 has increased to Rs 0.33 crore from Rs 0.10 crore in the previous 12-month period. This shows a significant growth in profits, as the company has already surpassed its sales from the previous 12 months in just nine months.

However, there are some areas of concern for Pasupati Spinning & Weaving Mills. The net sales for the quarter have fallen by -5.7% to Rs 24.28 crore, compared to the average net sales of the previous four quarters, which were at Rs 25.74 crore. This indicates a negative trend in the company's sales in the near term.

Additionally, the company's cash and cash equivalents have also decreased to its lowest in the last six half-yearly periods at Rs 1.29 crore. This shows a deterioration in the company's short-term liquidity.

Furthermore, the debtors turnover ratio for the half-yearly period is also at its lowest in the last five half-yearly periods at 3.54 times. This suggests that the company's pace of settling its debtors has slowed down.

Overall, Pasupati Spinning & Weaving Mills has shown a mixed performance in the recent quarter, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.