Shankara Building Products Sees Negative Financial Performance in Q2 of FY 2024-2025

Shankara Building Products, a smallcap company in the construction material industry, recently announced its financial results for the quarter ending September 2024. According to the data, the company has seen a negative financial performance in the second quarter of the fiscal year 2024-2025. This has resulted in a decrease in the company's score from -2 to -8 in the last three months.

One of the major factors contributing to this decline is the Profit Before Tax less Other Income (PBT) which has fallen by -18.79% year on year, standing at Rs 19.40 crore. The near-term trend for PBT is also negative, indicating a potential struggle for the company in the coming months.

Another concerning aspect is the company's operating cash flow, which has hit its lowest point in the last three years at Rs 9.72 crore. This suggests that the company's cash revenues from business operations are declining.

In addition, the PBT for the quarter is also at its lowest point in the last five quarters, standing at Rs 19.40 crore. This further reinforces the negative trend in the company's financial performance.

The earnings per share (EPS) for the quarter is also at its lowest point in the last five quarters, standing at Rs 6.27. This indicates a decline in profitability and a lower return for shareholders.

Furthermore, the company's debtors turnover ratio for the half-yearly period is at its lowest point in the last five periods, standing at 7.04 times. This suggests that the company's pace of settling its debtors has slowed down.

Based on these financial results, MarketsMOJO has given a 'Sell' call for Shankara Building Products. It is important for investors to carefully consider these factors before making any investment decisions.