Sarveshwar Foods Reports Positive Growth in Q1 Financial Results, But Stock Call is 'Sell'

Sarveshwar Foods, a microcap company in the FMCG industry, has recently declared its financial results for the quarter ending March 2024. The company has shown positive growth in its net sales and profit after tax (PAT) compared to the same quarter last year. However, according to MarketsMOJO, the stock call for Sarveshwar Foods is 'Sell'.

In the last three months, the company's score has fallen from 21 to 16, indicating a decline in its overall performance. Despite this, there are some positive aspects to the company's financials. The net sales for the quarter have grown by 90.52% year on year, and the PAT has grown by 128.7% year on year. This shows a strong sales trend in the near term.

Moreover, Sarveshwar Foods has recorded its highest net sales of Rs 247.32 crore in the last five quarters, with a consistent growth in each quarter. However, there are some areas of concern as well. The company's operating profit to interest ratio is at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. The interest cost has also increased, which could be a result of increased borrowings.

Additionally, the company's non-operating income is 55.74% of its PBT, which is a cause for concern as it indicates a high reliance on non-business activities for income. The non-operating income has also increased significantly in the last five quarters, which may not be sustainable in the long run.

Overall, Sarveshwar Foods has shown positive financial performance in the quarter ending March 2024, but there are some red flags that investors should consider before making any investment decisions. The company's stock call by MarketsMOJO is 'Sell', and it is important for investors to carefully analyze the company's financials before making any decisions.