Prima Agro's Financial Report Shows Decline in Profitability and Reliance on Non-Business Income

Prima Agro, a microcap company in the aquaculture industry, recently announced its financial results for the quarter ending March 2024. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO.

According to the financial report, Prima Agro's performance has remained flat in the last quarter, with a score of -4 compared to -1 in the previous three months. This indicates a decline in the company's financial health.

One of the major concerns highlighted in the report is the company's operating profit, which has been the lowest in the last five quarters at Rs -0.72 crore. The trend for near-term operating profit is also negative, indicating potential challenges for the company in the coming months.

Similarly, the profit before tax (PBT) less other income has also been the lowest in the last five quarters at Rs -0.92 crore. This trend is also negative, indicating a decline in the company's profitability.

The report also points out that Prima Agro's non-operating income is 127.63% of its PBT. This means that a significant portion of the company's income is coming from non-business activities, which may not be a sustainable business model in the long run.

Moreover, the company's earnings per share (EPS) have also been the lowest in the last five quarters at Rs -1.08. This indicates a decline in profitability and lower returns for shareholders.

On a positive note, the company's non-operating income has been the highest in the last five quarters at Rs 4.25 crore. However, the report cautions that this increase in income from non-business activities may not be sustainable.

In conclusion, Prima Agro's financial performance for the quarter ending March 2024 has been concerning, with a decline in profitability and a high reliance on non-business income. Investors should carefully consider these factors before making any investment decisions.