Shiva Mills Reports Flat Performance in Q2, Record Net Sales but Concerns Remain

Shiva Mills, a microcap textile company, 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, Shiva Mills has experienced a flat performance in the second quarter of the fiscal year 2024-2025. The company's score has dropped from 2 to 0 in the last three months.

However, there are some positive aspects to the company's financials. Shiva Mills has recorded its highest net sales in the last five quarters, amounting to Rs 48.07 crore. The sales trend in the near term is also positive.

On the other hand, there are some areas of concern for Shiva Mills. The company's debtors turnover ratio has been consistently falling in the last five half-yearly periods, with the latest figure being the lowest at 6.96 times. This indicates a slowdown in the company's pace of settling its debtors.

Moreover, the company's operating cash flow has also been on a decline, with the latest figure being the lowest at Rs -17.31 crore in the last three years. This suggests that the company's cash revenues from business operations are decreasing.

In addition, Shiva Mills' cash and cash equivalents have also been on a downward trend, with the latest figure being the lowest at Rs 0.24 crore in the last six half-yearly periods. This indicates a deterioration in the company's short-term liquidity.

Overall, Shiva Mills' financial performance for the quarter ending September 2024 has been lackluster, with some concerning factors that investors should take note of.