Raymond's Q1 financial results show mixed performance, investors advised to hold stock

Raymond, a midcap textile company, recently declared its financial results for the quarter ending June 2024. The stock call for the company by MarketsMOJO is 'Hold'.

According to the financials, Raymond's Profit After Tax (PAT) for the quarter has shown a significant growth of 91.8% year on year (YoY), with a score improvement from -3 to 5 in the last 3 months. The company's PAT trend in the near term is also positive. Additionally, the company's PAT for the quarter is the highest in the last five quarters, indicating a positive trend in profitability and higher earnings for shareholders.

The company's Cash and Cash Equivalents for the half-yearly period have also shown improvement, with the highest amount of Rs 525.57 crore in the last six half-yearly periods. This signifies an improvement in short-term liquidity for the company. Raymond has also distributed a higher dividend of Rs 10 per share from the profits generated, with a dividend payout ratio of 12.64% in the last five years.

However, there are some areas where Raymond's financial performance has not been as positive. The company's Net Sales for the quarter have fallen by -47.07% YoY, with a very negative trend in the near term. The Profit Before Tax less Other Income (PBT) has also shown a significant decline of -795.88% YoY, with a very negative trend in the near term. The company's interest cost has also increased, indicating higher borrowings.

In the last five quarters, Raymond's Net Sales and Operating Profit (PBDIT) have been the lowest, with a negative trend in the near term. The company's Operating Profit Margin has also decreased to 10.80%, indicating a decline in efficiency. The PBT for the quarter is also the lowest in the last five quarters, with a negative trend in the near term. Additionally, the company's pace of settling its Debtors has slowed, with the lowest Debtors Turnover Ratio of 5.23 times in the last five half-yearly periods.

Overall, Raymond's financial performance for the quarter ending June 2024 has been flat, with some positive and negative trends. Investors are advised to hold their stock and keep a close eye on the company's future financial results.