Sharika Enterprises Reports Strong Financial Performance in Q1 FY25, MarketsMOJO Calls for 'Hold' on Stock

Sharika Enterprises, a microcap engineering company, has recently announced its financial results for the quarter ending June 2024. The stock call by MarketsMOJO for Sharika Enterprises is ‘Hold’.

According to the financial report, Sharika Enterprises has shown a very positive performance in the quarter, with a score of 20 compared to 34 in the previous 3 months. The company’s Profit After Tax (PAT) for the half-yearly period has seen a significant growth of 607.77% year on year (YoY). This trend in PAT is highly positive for the company.

Moreover, the company’s PAT for the half-yearly period is higher at Rs 5.23 crore compared to the preceding 12 months period ending June 2024, which was at Rs -4.80 crore. This indicates that in just half a year, Sharika Enterprises has already surpassed its PAT for the entire previous year.

The company’s Inventory Turnover Ratio for the half-yearly period is at its highest at 6.70 times and has shown growth in each of the last five half-yearly periods. This indicates that Sharika Enterprises has been able to sell its inventory at a faster rate.

Similarly, the Debtors Turnover Ratio for the half-yearly period is also at its highest at 3.67 times and has shown growth in each of the last five half-yearly periods. This shows that the company has been able to settle its debtors at a faster rate.

In terms of sales, Sharika Enterprises has shown a growth of 37.78% YoY in the quarterly net sales, which is a positive trend for the company in the near term.

However, the company’s Earnings per Share (EPS) for the quarter is at its lowest at Rs -0.57 in the last five quarters. This indicates a decline in profitability and lower earnings for shareholders.

Overall, Sharika Enterprises has shown a very positive financial performance in the quarter ending June 2024, with strong growth in PAT, inventory turnover, and debtors turnover. However, the company’s EPS has declined, which may be a concern for shareholders. MarketsMOJO has given a ‘Hold’ call for the stock, suggesting a neutral stance for investors.