Shelter Infra Projects Shows Strong Financial Performance in Q1 FY25, But Cash and Debt Raise Concerns

Debt to Equity Ratio – Half Yearly: Highest at 0.01 in the last six half yearly periods. Company has a low debt to equity ratio, indicating a strong financial position.

Shelter Infra Projects, a microcap company in the capital goods industry, has recently announced its financial results for the quarter ending June 2024. The company has shown a positive performance in this quarter, with a score of 6 compared to -1 in the previous quarter.

The company’s operating profit (PBDIT) for this quarter was the highest in the last five quarters, at Rs 0.29 crore. This indicates a positive trend in the near term for operating profit. Similarly, the profit before tax (PBT) less other income was also the highest in the last five quarters, at Rs 0.26 crore. The company’s profit after tax (PAT) for this quarter was also the highest in the last five quarters, at Rs 0.25 crore. This shows a positive trend in the near term for both PBT and PAT.

The earnings per share (EPS) for this quarter was also the highest in the last five quarters, at Rs 0.70. This indicates an increasing profitability for the company, creating higher earnings for its shareholders.

However, there are some areas that need improvement for Shelter Infra. The company’s cash and cash equivalents for the half-yearly period were the lowest in the last six periods, at Rs 0.70 crore. This shows a deteriorating short-term liquidity for the company. Additionally, the debt to equity ratio for the half-yearly period was the highest in the last six periods, at 0.01. This indicates a low debt to equity ratio, which is a positive sign for the company’s financial position.

Based on these financial results, MarketsMOJO has given a ‘Sell’ call for Shelter Infra’s stock. Investors should carefully consider these factors before making any investment decisions.