Shervani Indl Sy's Q2 financial report shows negative performance, receives 'Strong Sell' call

Shervani Industrial Syndicate, a microcap company in the construction and real estate industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financial report, Shervani Indl Sy has seen a negative performance in the second quarter of the fiscal year 2024-2025. However, there has been a slight improvement in the company's score, which has gone from -24 to -19 in the last three months.

The company's cash and cash equivalents have shown a positive trend, with the highest amount of Rs 31.20 crore in the last six half-yearly periods. This indicates an improvement in short-term liquidity.

On the other hand, the dividend payout ratio (DPR) has been the highest in the last five years at 16.68%. This shows that the company is distributing a higher proportion of its profits as dividends.

However, there are some areas where Shervani Indl Sy needs to work on. The profit after tax (PAT) for the half-yearly period has decreased by 95.36% year on year, indicating a negative trend in the near term. Similarly, the net sales for the quarter have fallen by 35.27% year on year, and the profit before tax less other income (PBT) has also decreased by 84.33% year on year. The company's operating cash flow has also been the lowest in the last three years, indicating a decline in cash revenues from business operations.

Overall, Shervani Industrial Syndicate's financial performance for the quarter ending September 2024 has been negative, and the company's stock has been given a 'Strong Sell' call by MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.