Popular Vehicles & Services' Financial Results Show Decline in Sales, MarketsMOJO Advises 'Sell' Rating

May 29 2024 06:01 PM IST
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Popular Vehicles & Services, a smallcap auto company, reported a decline in net sales by 11.7% for the quarter ending March 2024. Non-operating income accounted for 67.33% of profit before tax, indicating an unsustainable business model. MarketsMojo has advised selling stocks due to concerning sales trend and reliance on non-business income.

Popular Vehicles & Services, a smallcap company in the auto industry, recently declared its financial results for the quarter ending March 2024. According to the data released on May 29, 2024, the company's stock has been given a 'Sell' call by MarketsMOJO.

The financials for the quarter show a decline in net sales by 11.7% compared to the average net sales of the previous four quarters. This is a concerning trend for the company's near term sales. Additionally, the net sales for the quarter were the lowest in the last five quarters, indicating a negative sales trend.

Another red flag in the financials is the non-operating income, which accounts for 67.33% of the company's profit before tax. This suggests that the company's income from non-business activities is high, which is not a sustainable business model.

Based on these financials, MarketsMOJO has advised investors to sell their stocks in Popular Vehicles & Services. The company will need to address these issues and improve its sales and business model to regain investor confidence and improve its financial performance in the future.
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