Shoppers Stop's Q1 FY25 Financial Results Show Negative Performance, Investors Advised to Sell

Shoppers Stop, a midcap retail company, has recently declared its financial results for the quarter ending June 2024. According to the data released on July 18, 2024, the company has seen a negative financial performance with a score of -16, a significant drop from -8 in the last three months.

Despite this, there are some positive aspects to the company’s financials. Shoppers Stop has shown a strong operating cash flow, with the highest annual amount of Rs 561.29 crore and a consistent growth over the past three years. This indicates that the company has been able to generate higher cash revenues from its business operations.

However, there are also some concerning factors in the financial report. The company’s profit before tax (PBT) less other income has fallen to Rs -35.20 crore, a decrease of -355.4% compared to the average PBT of the previous four quarters. This trend is also reflected in the profit after tax (PAT), which has fallen to Rs -22.72 crore, a decrease of -210.4% compared to the average PAT of the previous four quarters.

Additionally, Shoppers Stop’s operating profit to interest ratio has reached its lowest point in the last five quarters, indicating a deteriorating ability to manage interest payments. The company’s operating profit (PBDIT) has also decreased to its lowest point of Rs 142.92 crore in the last five quarters, and the operating profit margin has also declined to its lowest point of 13.37%.

Overall, the company’s financial performance for the quarter ending June 2024 has been negative, with a downward trend in key areas such as PBT, PAT, and operating profit. This has resulted in a stock call of ‘Sell’ by MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding Shoppers Stop’s stock.