Saboo Sodium reports strong PAT growth, but decline in Net Sales raises concerns

Saboo Sodium Chloro, a microcap company in the FMCG industry, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

Despite the negative outlook from MarketsMOJO, Saboo Sodium has shown positive financial performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 18 to 14 in the last three months.

According to the September 2024 financials, Saboo Sodium has seen a significant growth in its Profit After Tax (PAT) for the half-yearly period. The PAT has increased by 349.15% year on year, indicating a very positive trend. Moreover, the company's PAT for the half-yearly period is higher than the preceding 12 months, showing a strong performance in the first half of the fiscal year.

Saboo Sodium has also generated the highest Operating Cash Flow of Rs 5.18 crore in the last three years. This indicates that the company has been able to generate higher cash revenues from its business operations.

However, the company's Net Sales for the quarter have fallen by -10.0% compared to the average Net Sales of the previous four quarters. This is a cause for concern as it shows a negative trend in the near term.

Overall, Saboo Sodium has shown a mixed performance in its financials for the quarter ending September 2024. While there are some positive aspects such as the growth in PAT and Operating Cash Flow, the decline in Net Sales is a cause for caution. Investors should carefully evaluate the company's financials before making any investment decisions.