SEAMEC Ltd Reports Strong Financial Performance in Q1 FY25, Stock Call 'Hold'

SEAMEC Ltd, a smallcap shipping company, has recently declared its financial results for the quarter ended June 2024. The company has shown a very positive performance in terms of profit before tax (PBT) and profit after tax (PAT), with a growth of 176.56% and 62.9% respectively compared to the same quarter last year. This has led to a rise in the company’s score from 21 to 20 in the last three months.

The net sales for the first half of the year have also shown a positive trend, with a growth of 33.77% compared to the previous year. Additionally, SEAMEC Ltd has generated the highest operating cash flow of Rs 149.99 crore in the last three years, indicating a strong financial position.

However, there are some areas that need improvement for the company. The interest cost has increased by 71.19% in the last nine months, indicating a rise in borrowings. The debt-equity ratio has also reached its highest level in the last five half-yearly periods, which may put a strain on the company’s liquidity. Moreover, the company’s pace of settling its debtors has slowed down, with the debtors turnover ratio at its lowest in the last five half-yearly periods. Additionally, SEAMEC Ltd has not distributed any dividends in the last five years, with a dividend payout ratio of 0.00%.

Overall, SEAMEC Ltd has shown a strong financial performance in the quarter ended June 2024, with some areas that need attention for improvement. The stock call for the company by MarketsMOJO is ‘Hold’, indicating a neutral stance for investors.