PBM Polytex's Q2 Financial Report Shows Decline in Sales and Low Cash Flow

Nov 14 2024 09:24 PM IST
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PBM Polytex, a microcap textile company, reported flat performance in the second quarter of fiscal year 2024-2025 with consistently low operating cash flow and a decrease in net sales. The company's dividend payout ratio is also at its lowest in five years. MarketsMojo has given a 'Strong Sell' call for its stock.

PBM Polytex, a microcap textile company, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financial report, PBM Polytex's performance in the second quarter of the fiscal year 2024-2025 has remained flat, with no significant changes in the last three months. However, the company's operating cash flow has been consistently low, with the latest annual figure at Rs -11.18 crore. This indicates a decline in cash revenues from business operations.

In terms of sales, PBM Polytex has seen a decrease of 9.4% in the quarterly net sales, which stands at Rs 42.57 crore. This is lower than the average net sales of the previous four quarters, which was Rs 46.98 crore. This suggests a negative trend in the company's near-term sales.

Furthermore, PBM Polytex's dividend payout ratio (DPR) has been at its lowest in the last five years, at 0.00%. This means that the company is distributing a lower proportion of its profits as dividends to its shareholders.

Overall, based on the financial results for the quarter, PBM Polytex's performance has not been up to par. With a 'Strong Sell' call from MarketsMOJO, investors may want to carefully consider their investment in this microcap textile company.
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