Shankara Building Products' Financial Report Shows Mixed Performance, MarketsMOJO Calls for 'Sell'

Shankara Building Products, a smallcap company in the construction material industry, recently announced its financial results for the quarter ending June 2024. The stock call by MarketsMOJO for Shankara Build. is 'Sell'.

According to the financial report, the company's performance has remained flat in the last quarter, with a score of -2 compared to 15 in the previous 3 months. However, there are some positive aspects to note from the financials.

One of the key strengths of Shankara Build. is its inventory turnover ratio, which has been consistently growing each half year in the last five periods. In the half year ending June 2024, the company's inventory turnover ratio was at its highest at 9.96 times, indicating that it has been able to sell its inventory at a faster rate.

On the other hand, there are some areas of concern for Shankara Build. based on its financial performance in the last quarter. The company's operating cash flow has been declining, with the lowest figure of Rs 9.72 crore in the last three years. This suggests that the company's cash revenues from business operations are falling.

Furthermore, the company's profit before tax less other income (PBT) for the quarter was at its lowest in the last five quarters, at Rs 21.01 crore. This represents a negative trend in the near term. Similarly, the PBT for the quarter has fallen by 7.49% year on year, while the profit after tax (PAT) has also declined by 7.1% year on year. This indicates a negative trend in the company's profitability.

In addition, the earnings per share (EPS) for the quarter was at its lowest in the last five quarters, at Rs 6.62. This shows a declining profitability trend and suggests that the company has created lower earnings for its shareholders.

Overall, while Shankara Building Products has shown some strengths in its financial performance, there are also areas of concern that investors should take note of. The stock call by MarketsMOJO to 'Sell' the stock reflects the current financial situation of the company.