Sharda Motor Industries Reports Positive Financial Results for Q2 FY24-25

Sharda Motor Industries, a midcap auto ancillary company, has recently declared its financial results for the quarter ended September 2024. The company has shown a positive performance in the second quarter of the fiscal year 2024-25, with a steady score in the last three months.

According to the financial report, the company's Profit After Tax (PAT) for the nine-month period has grown by 23.53% year on year, reaching Rs 243.84 crore. This indicates a positive trend in the near term for Sharda Motor. Additionally, the company has also generated the highest Operating Cash Flow of Rs 369.56 crore in the last three years, showcasing its ability to generate higher cash revenues from business operations.

In terms of Operating Profit (PBDIT), Sharda Motor has recorded its highest figure of Rs 105.42 crore in the last five quarters, with a positive trend in the near term. The company's efficiency has also improved, as seen in the highest Operating Profit Margin of 14.82% in the last five quarters. Moreover, the Profit Before Tax less Other Income (PBT) for the quarter has also reached its highest at Rs 90.73 crore, with a positive trend in the near term.

However, one area of concern for Sharda Motor is its Dividend Payout Ratio (DPR), which is at its lowest of 0.00% in the last five years. This indicates that the company is distributing a lower proportion of its profits as dividends.

Despite this, MarketsMOJO has given a 'Buy' call for Sharda Motor's stock, based on its positive financial performance in the second quarter of FY24-25. With a strong track record and promising financials, Sharda Motor Industries is definitely a company to watch out for in the auto ancillary industry.