Shivalik Rasayan's Q1 FY25 Financial Results Show Mixed Performance, with Positive Sales Growth and Concerns Over Profit and Inventory.

Shivalik Rasayan, a microcap company in the chemicals industry, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Strong Sell’ rating by MarketsMOJO.

According to the financial report, Shivalik Rasayan has seen a negative performance in the quarter, with a score of -8. However, this is an improvement from the previous quarter’s score of -16. The company’s net sales for the quarter were the highest in the last five quarters, at Rs 74.63 crore, and have been growing each quarter. This indicates a positive trend in the company’s near-term sales.

Another positive aspect of the company’s financials is its debtors turnover ratio, which was the highest in the last five half-yearly periods at 3.15 times. This shows that the company has been able to settle its debtors faster.

However, there are some areas of concern for Shivalik Rasayan. The profit before tax (PBT) less other income for the quarter was Rs 3.96 crore, which is a decrease of 44.15% compared to the same period last year. The near-term trend for PBT is also negative. Additionally, the company’s interest costs have increased by 27.97% in the last half-yearly period, indicating a rise in borrowings. The inventory turnover ratio for the company has also decreased in the last five half-yearly periods, showing a slower pace of selling inventory.

Overall, Shivalik Rasayan’s financial performance for the quarter ending June 2024 has been mixed, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.