RDB Rasayans Reports Mixed Performance in Q2 FY24-25, PAT Shows Growth

RDB Rasayans, a microcap company in the packaging industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for RDB Rasayans is 'Hold'.

According to the financial report, the company's performance has remained flat in the second quarter of FY24-25, with a score of 3 compared to 18 in the previous three months. However, there are some positive aspects to the company's financials.

The Profit After Tax (PAT) for the nine-month period has shown a growth of 33.92% year on year, reaching Rs 19.07 crore. This indicates a positive trend in the near term. Additionally, the Debtors Turnover Ratio for the half-yearly period is at its highest in the last five years, showing that the company has been able to settle its debtors faster.

On the other hand, there are some areas of concern for RDB Rasayans. The Net Sales for the quarter have fallen by -11.8% compared to the average of the previous four quarters. This indicates a very negative trend in the near term. The Operating Cash Flow for the last three years is at its lowest, indicating a decline in the company's cash revenues from business operations.

Furthermore, the Operating Profit (PBDIT) and Profit Before Tax less Other Income (PBT) for the quarter are at their lowest in the last five quarters, showing a negative trend in the near term. The company's Non Operating Income is also high, accounting for 70.58% of the PBT. This indicates that the company's income from non-business activities is not a sustainable business model. Additionally, the Non Operating Income for the quarter is at its highest in the last five quarters, which may not be sustainable in the long run.

Overall, RDB Rasayans has shown a mixed performance in the recent quarter, with some positive and negative aspects. Investors are advised to hold their stocks and closely monitor the company's future financial reports.