Shoppers Stop's Q4 financials show negative performance and concerning trends

Shoppers Stop, a midcap retail company, recently announced its financial results for the quarter ending March 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financials, Shoppers Stop has seen a negative performance in the quarter, with a score of -6 compared to 0 in the previous 3 months. However, there are some positive aspects to the company's performance.

The Profit After Tax (PAT) for the quarter was Rs 24.41 crore, showing a growth of 35.3% compared to the average PAT of the previous four quarters, which was Rs 18.04 crore. This indicates a positive trend in the near term for the company.

On the other hand, the Profit Before Tax less Other Income (PBT) for the quarter was Rs -2.94 crore, showing a significant decline of -122.1% compared to the average PBT of the previous four quarters, which was Rs 13.30 crore. This is a cause for concern as the near term trend for PBT is very negative.

Another issue highlighted in the financials is the company's high Non Operating Income, which is 109.29% of the Profit Before Tax. This means that a significant portion of the company's income is coming from non-business activities, which may not be a sustainable business model. The Non Operating Income for the quarter was the highest in the last five quarters at Rs 34.59 crore.

Overall, Shoppers Stop's financial performance for the quarter ending March 2024 has been negative, with some concerning trends. Investors should carefully consider these factors before making any decisions regarding the company's stock.