Rishabh Instruments Reports Negative Performance in Q1, Receives 'Strong Sell' Rating

Rishabh Instruments, a smallcap company in the capital goods industry, recently announced its financial results for the quarter ending June 2024. According to the data, the company has seen a negative performance in this quarter, with a decline in profit before tax and net sales.

The profit before tax (PBT) for this quarter was Rs 3.51 crore, which is a significant decrease of 59.8% compared to the average PBT of the previous four quarters, which was Rs 8.73 crore. This trend is expected to continue in the near term. Similarly, the profit after tax (PAT) for the first half of the year was Rs 7.94 crore, showing a decline of 49.14% year on year. The net sales for this quarter were Rs 52.69 crore, which is a decrease of 6.2% compared to the average net sales of the previous four quarters, which was Rs 56.15 crore.

The operating profit margin for this quarter was at its lowest in the last five quarters, at 11.52%. This indicates a decline in the company's efficiency. Additionally, the non-operating income for this quarter was 37.21% of the PBT, which is a cause for concern as it shows a high reliance on non-business activities for income.

The earnings per share (EPS) for this quarter were at its lowest in the last five quarters, at Rs 0.97. This decline in profitability is not a good sign for shareholders.

Based on these financial results, MarketsMOJO has given a 'Strong Sell' call for Rishabh Instruments' stock. The company needs to address these issues and improve its financial performance in order to regain investor confidence.