Poddar Pigments Reports Mixed Financial Results for Q2 FY25, MarketsMOJO Advises Hold

Poddar Pigments, a microcap company in the dyes and pigments industry, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, Poddar Pigments has seen a negative performance in the quarter, with a score of -9 compared to 1 in the previous quarter. However, there are some positive aspects to the company’s financials. The operating cash flow has been consistently growing in the last three years, with the highest amount of Rs 21.26 crore generated annually. The company also has a strong cash position, with Rs 39.87 crore in cash and cash equivalents in the last six half-yearly periods.

On the other hand, there are some areas of concern for Poddar Pigments. The profit before tax less other income (PBT) has fallen by 44.4% compared to the average of the previous four quarters. The profit after tax (PAT) has also decreased by 30.7% in the same period. The operating profit margin has hit a low of 7.31%, indicating a decline in the company’s efficiency. The non-operating income, which is 36.44% of the PBT, is a cause for concern as it may not be a sustainable business model. The earnings per share (EPS) have also decreased, creating lower earnings for shareholders.

Overall, Poddar Pigments has shown a negative trend in its financial performance for the quarter ending September 2024. While there are some positive aspects, the company needs to address the areas of concern to improve its profitability and sustainability. Investors are advised to hold their position in the company’s stock, as recommended by MarketsMOJO.