Popular Vehicles & Services Reports Negative Performance in Q2 FY24-25

Nov 14 2024 03:47 PM IST
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Popular Vehicles & Services, a smallcap company in the passenger car industry, has reported a negative performance in the second quarter of FY24-25. The company's financial health has declined, with a significant decrease in both Profit Before Tax and Profit After Tax. Non Operating Income is also a concern, indicating an unsustainable business model. MarketsMojo has advised investors to sell the stock.

Popular Vehicles & Services, a smallcap company in the passenger car industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is 'Sell'.

According to the financial report, Popular Vehicles has seen a negative performance in the second quarter of FY24-25. The company's score has fallen from -5 to -13 in the last three months. This indicates a decline in its financial health.

One of the major factors contributing to this decline is the Profit Before Tax (PBT) less Other Income, which has fallen by 57.5% to Rs 6.30 crore compared to the average PBT of the previous four quarters, which was Rs 14.84 crore. This shows a negative trend in the near term for PBT.

Similarly, the Profit After Tax (PAT) has also seen a significant decline of 59.0% to Rs 7.57 crore compared to the average PAT of the previous four quarters, which was Rs 18.44 crore. This indicates a negative trend in the near term for PAT.

Another concerning factor is the Non Operating Income, which is 46.88% of the Profit Before Tax. This means that the company's income from non-business activities is high, which is not a sustainable business model.

Overall, the financial results for the quarter ending September 2024 have not been favorable for Popular Vehicles & Services. Investors are advised to take note of the negative trends and consider the stock call of 'Sell' by MarketsMOJO before making any investment decisions.
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