Pharmaids Pharma Reports Positive Q2 Results, Operating Cash Flow Declines

Pharmaids Pharmaceuticals, a microcap pharmaceutical company, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Pharmaids Pharma has shown a positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from -6 to 8 in the last three months.

One of the key factors contributing to this positive performance is the increase in net sales. In the quarter ending September 2024, the company's net sales were Rs 5.24 crore, which is a growth of 260.8% compared to the average net sales of the previous four quarters, which was Rs 1.45 crore. This indicates a very positive sales trend in the near term.

Another positive aspect highlighted in the financial report is the debtors turnover ratio. In the last five half-yearly periods, the company has achieved the highest ratio of 1.37 times. This shows that Pharmaids Pharma has been able to settle its debtors faster.

However, the company's operating cash flow has been a cause for concern. In the last three years, the operating cash flow has been consistently falling and in the fiscal year ending September 2024, it was at its lowest at Rs -10.62 crore. This indicates that the company's cash revenues from business operations are declining.

Overall, Pharmaids Pharmaceuticals has shown a positive financial performance in the recent quarter, with an increase in net sales and improved debtors turnover ratio. However, the declining operating cash flow is a cause for concern and investors should take note of this while making any investment decisions.