Shree Rama Multi-Tech Reports Strong Financial Performance in Q2 FY24-25

Shree Rama Multi-Tech, a microcap company in the packaging industry, has recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is 'Hold'.

According to the financials, Shree Rama Multi-Tech has shown a very positive performance in the second quarter of FY24-25. The company's score has improved from 10 to 22 in the last three months.

One of the key factors contributing to this positive performance is the growth in Profit Before Tax less Other Income (PBT) for the quarter. At Rs 5.05 crore, it has increased by 83.1% compared to the average PBT of the previous four quarters, which was Rs 2.76 crore. This indicates a very positive trend in the near term.

Another noteworthy aspect is the company's Operating Cash Flow, which has been consistently growing each year in the last three years. In the latest financial year, it has reached its highest at Rs 20.84 crore, indicating that the company has generated higher cash revenues from its business operations.

The Profit After Tax (PAT) for the quarter has also shown a significant growth of 73.2% compared to the average PAT of the previous four quarters, which was Rs 3.06 crore. This is another positive trend in the near term for the company.

In terms of sales, Shree Rama Multi-Tech has recorded its highest net sales of Rs 52.80 crore in the last five quarters, indicating a positive trend in the near term. The company's Operating Profit (PBDIT) has also reached its highest at Rs 7.33 crore in the last five quarters, showing a positive trend in the near term.

The company's efficiency has also improved, as seen in the highest Operating Profit Margin of 13.88% in the last five quarters. This indicates that the company is utilizing its resources effectively.

Overall, Shree Rama Multi-Tech has shown a positive trend in its financial performance, with the highest PBT and PAT in the last five quarters. This has also resulted in an increase in the company's Earnings per Share (EPS) to Rs 0.40, indicating that the company has created higher earnings for its shareholders.