Ravikumar Distilleries Shows Positive Growth in Financial Results, But Concerns Remain

Ravikumar Distilleries, a microcap company in the breweries industry, has recently announced its financial results for the quarter ending March 2024. The company has shown a positive performance with a score of 8, a significant improvement from -9 in the last 3 months.

One of the key highlights of the financial report is the growth in Profit After Tax (PAT) which has increased by 207.1% year on year, reaching Rs 1.35 crore. This is a positive trend for the company in the near term. Additionally, the Net Sales for the quarter were at their highest in the last five quarters, standing at Rs 7.13 crore. This indicates a positive sales trend for Ravikumar Distilleries.

The company has also shown a strong performance in terms of profitability, with the highest PAT of Rs 1.35 crore in the last five quarters. This has resulted in an increase in Earnings per Share (EPS) to Rs 0.56, creating higher earnings for shareholders.

However, the financial report also highlights a concern in the form of Non Operating Income, which is 160% of the Profit Before Tax (PBT). This indicates that the company's income from non-business activities is high, which may not be a sustainable business model.

Based on these financial results, MarketsMOJO has given a 'Sell' call for Ravikumar Distilleries' stock. Investors should carefully consider these factors before making any investment decisions.