Saurashtra Cement's Q1 results show strong cash flow and liquidity, receives 'Buy' call from MarketsMOJO

Saurashtra Cement, a smallcap company in the cement industry, has recently declared its financial results for the quarter ending June 2024. The company has received a 'Buy' call from MarketsMOJO, indicating a positive outlook for the stock.

In the last three months, Saurashtra Cement has shown a significant improvement in its financial performance, with its score rising from 28 to 6. This is a result of various factors that have worked in the company's favor.

One of the key highlights of the financial results is the company's strong operating cash flow, which has been consistently growing over the past three years. This is a positive sign as it indicates that the company is generating higher cash revenues from its business operations.

Moreover, Saurashtra Cement has also shown improvement in its short-term liquidity, with its cash and cash equivalents reaching a record high of Rs 249.37 crore in the last six half-yearly periods. This indicates that the company is in a better position to meet its short-term financial obligations.

Another positive aspect of the financial results is the company's Debtors Turnover Ratio, which has been consistently improving over the past five half-yearly periods. This shows that Saurashtra Cement has been able to settle its debtors faster, which is a good sign for its financial health.

On the other hand, there are some areas where the company needs to work on. The Profit Before Tax (PBT) and Profit After Tax (PAT) for the quarter have both shown a significant decline compared to the average of the previous four quarters. This is a cause for concern and the company needs to address this issue in the near future.

Similarly, the Net Sales for the quarter have also shown a decline, which is not a positive sign for the company. Additionally, the company's non-operating income is high, which is not a sustainable business model in the long run.

Overall, Saurashtra Cement has shown a positive financial performance in the quarter ending June 2024, with some areas that need improvement. With the 'Buy' call from MarketsMOJO, investors can consider this smallcap company for their portfolio.