Shri Vasuprada Plantations Shows Positive Financial Growth in Q3 2024 Despite 'Sell' Call from MarketsMOJO

Shri Vasuprada Plantations, a microcap company in the tea/coffee industry, has recently announced its financial results for the quarter ending September 2024. The company has received a 'Sell' call from MarketsMOJO, a leading financial analysis platform.

Despite this, Shri Vasuprada has shown positive financial performance in the quarter, with a score improvement from -8 to 7 in the last 3 months. This is a significant improvement and reflects the company's efforts to turn its financials around.

One of the key factors contributing to this positive performance is the growth in Profit Before Tax less Other Income (PBT) which has increased by 239.15% year on year. The company's Profit After Tax (PAT) has also seen a significant growth of 375.5% year on year. This trend is expected to continue in the near term.

Shri Vasuprada has also shown a strong ability to manage its interest payments, with an Operating Profit to Interest ratio of 3.95 times, the highest in the last five quarters. The company's Net Sales have also seen a positive trend, with the highest recorded at Rs 35.45 crore in the last five quarters. This indicates a growing demand for the company's products.

The Operating Profit (PBDIT) has also seen a positive trend, with the highest recorded at Rs 5.92 crore in the last five quarters. The company's efficiency has also improved, with the Operating Profit Margin reaching its highest at 16.70%.

However, there are some areas that need improvement for Shri Vasuprada. The company's Operating Cash Flow has been consistently falling in the last three years, with the lowest recorded at Rs -10.47 crore annually. This indicates a decline in cash revenues from business operations.

Another concern is the high Non Operating Income, which accounts for 35.70% of the Profit Before Tax (PBT). This suggests that the company's income from non-business activities is high, which may not be a sustainable business model in the long run.

Overall, Shri Vasuprada's financial performance in the quarter ending September 2024 has shown positive signs of growth and improvement. However, the company needs to address its declining cash flow and reliance on non-business income to sustain its growth in the long term. Investors are advised to carefully consider these factors before making any investment decisions.