Sheetal Cool Products Reports Decline in Financial Performance for Q3 2024
Sheetal Cool Products, a microcap FMCG company, has reported a decline in its financial performance for the quarter ending September 2024. The company's net sales, profit before tax, and operating profit have all decreased compared to the previous year, indicating a negative trend in the near term. The company's high non-operating income and low earnings per share also raise concerns about its sustainability. MarketsMojo has given a 'Sell' call for the company's stock based on these financials.
Sheetal Cool Products, a microcap FMCG company, recently declared its financial results for the quarter ending September 2024. However, the news is not positive for the company as it has seen a decline in its financial performance.
According to the latest financials, the company's net sales for the quarter were at Rs 52.99 crore, which is a decrease of 24.48% compared to the same quarter last year. This indicates a negative trend in the company's sales in the near term.
The profit before tax (PBT) less other income has also fallen by 282.76% year on year, with a quarterly figure of Rs -6.36 crore. This trend is also reflected in the company's profit after tax (PAT), which has decreased by 22.9% compared to the previous year.
The company's operating profit to interest ratio is at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. The net sales and operating profit (PBDIT) are also at their lowest in the last five quarters, with a negative trend in the near term.
The operating profit margin has also decreased to -5.59%, indicating a decline in the company's efficiency. The PBT less other income is also at its lowest in the last five quarters, with a negative trend in the near term.
One concerning aspect of the company's financials is the high non-operating income, which is 266.06% of the PBT. This suggests that the company's income from non-business activities is high, which may not be a sustainable business model.
The earnings per share (EPS) for the quarter is also at its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. Based on these financials, MarketsMOJO has given a 'Sell' call for Sheetal Cool's stock.
In conclusion, Sheetal Cool Products has seen a negative financial performance in the quarter ending September 2024, with a decline in sales, profits, and efficiency. Investors should carefully consider these factors before making any investment decisions.
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