Sarveshwar Foods Reports Positive Q1 FY25 Results, But MarketsMOJO Issues 'Sell' Call

Sarveshwar Foods, a microcap company in the FMCG industry, has recently declared its financial results for the quarter ending March 2024. According to the latest report, the company has shown positive performance in terms of net sales and profit after tax (PAT). However, MarketsMOJO has given a ‘Sell’ call for the company’s stock.

In the last three months, Sarveshwar Foods’ score has fallen from 21 to 17. Despite this, the company’s net sales for the quarter have grown by 90.52% year on year, reaching Rs 247.32 crore. This shows a very positive trend in the near term. Similarly, the PAT for the quarter has also shown a significant growth of 128.7% year on year, amounting to Rs 4.14 crore.

The company’s net sales have been consistently growing in the last five quarters, with the highest being Rs 247.32 crore in the current quarter. This is a positive sign for the company’s sales trend in the near future. Additionally, Sarveshwar Foods has been able to reduce its debt-equity ratio to 1.18 times in the last five half-yearly periods, indicating a decrease in borrowing compared to equity capital.

However, there are some areas where the company needs to improve. The operating profit to interest ratio for the quarter is the lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. The interest cost has also increased by 22.40% over the previous half-yearly period, which could be a cause for concern. Moreover, the company’s non-operating income is 55.74% of the profit before tax, which is a high percentage and may not be sustainable in the long run.

Overall, Sarveshwar Foods has shown positive financial performance in the quarter ending March 2024. However, investors should carefully consider the company’s financials and the ‘Sell’ call by MarketsMOJO before making any investment decisions.