Primo Chemicals Reports Positive Q2 Results, But Some Areas Need Improvement

Primo Chemicals, a microcap company in the chemicals industry, has recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for Primo Chemicals is 'Hold'.

According to the financial report, Primo Chemicals has shown a positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from -12 to 13 in the last three months.

The company's profit after tax (PAT) for the quarter has seen a significant growth of 260.2% at Rs 12.93 crore, compared to the average PAT of the previous four quarters at Rs -8.07 crore. The net sales for the quarter were also at its highest at Rs 134.36 crore, showing a positive trend in the near term.

However, there are some areas that need improvement for Primo Chemicals. The inventory turnover ratio for the half-yearly period is at its lowest in the last five periods, indicating a slower pace of selling inventory. The interest cost has also increased, suggesting a rise in borrowings. The company's operating cash flow for the year is at its lowest in the last three years, indicating a decline in cash revenues from business operations. The debtors turnover ratio for the half-yearly period is also at its lowest, showing a slower pace of settling debts.

Overall, Primo Chemicals has shown a positive financial performance in the recent quarter, with an increase in profit and net sales. However, there are some areas that need improvement, and investors are advised to hold their stock for now, according to MarketsMOJO.