Sadhana Nitro Chem's Financial Results Show Concerning Trends for Investors

Sadhana Nitro Chem, a smallcap company in the chemicals industry, recently declared its financial results for the quarter ending June 2024. According to the data released on August 8, 2024, the company's performance has remained flat in the last quarter, with a score of -4 compared to 2 in the previous three months.

The company's net sales for the quarter were at Rs 36.10 crore, which is a decrease of 24.0% from the average net sales of the previous four quarters, which stood at Rs 47.51 crore. This decline in sales is a cause for concern, as the near-term sales trend for the company is negative.

Another area of concern for Sadhana Nitro is its debtors turnover ratio, which has been consistently falling in the last five half-yearly periods. The latest ratio stands at 1.51 times, indicating that the company's pace of settling its debtors has slowed down.

In addition, the company's net sales for the quarter were the lowest in the last five quarters, further highlighting the negative sales trend in the near term. The debt-equity ratio for the company has also been on the rise, reaching its highest at 1.03 times in the last five half-yearly periods. This indicates that the company is relying more on borrowing to fund its operations, which could potentially lead to a stressed liquidity situation.

Based on these financial results, MarketsMOJO has given a 'Strong Sell' call for Sadhana Nitro's stock. Investors should carefully consider these factors before making any investment decisions related to the company.