Shardul Securities Reports Positive Operating Cash Flow, But Decline in Net Sales and Profits

Shardul Securities, a microcap finance and non-banking financial company (NBFC), has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Shardul Securities has shown positive performance in the second quarter of the fiscal year 2024-2025. However, the company's score has decreased from 38 to 15 in the last three months.

One of the key factors contributing to the positive performance is the company's operating cash flow, which has been the highest in the last three years at Rs 19.86 crore. This indicates that the company has generated higher cash revenues from its business operations.

On the other hand, there are some areas that have not been performing well for Shardul Securities. The net sales for the quarter have fallen by 43.2% to Rs 40.11 crore, compared to the average net sales of the previous four quarters at Rs 70.67 crore. This shows a negative trend in the company's sales in the near term.

Similarly, the profit before tax less other income (PBT) for the quarter has also decreased by 47.3% to Rs 35.52 crore, compared to the average PBT of the previous four quarters at Rs 67.34 crore. The profit after tax (PAT) has also fallen by 39.1% to Rs 28.75 crore, compared to the average PAT of the previous four quarters at Rs 47.18 crore. This indicates a negative trend in the company's PBT and PAT in the near term.

Overall, while Shardul Securities has shown positive performance in terms of operating cash flow, the company's net sales, PBT, and PAT have seen a decline in the recent quarter. Investors are advised to hold their position in the company's stock, as recommended by MarketsMOJO.