Shristi Infra's Q2 2024 Financial Report Shows Mixed Results, Investors Advised to Proceed with Caution

Shristi Infrastructure Development Corporation, a microcap company in the construction and real estate industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financial report, Shristi Infra has seen a negative performance in the second quarter of the fiscal year 2024-2025, with a score of -13 compared to -12 in the previous quarter. However, there are some positive aspects to the company's financials.

One of the strengths of Shristi Infra is its operating cash flow, which has been consistently growing over the past three years and was at its highest at Rs 71.23 crore annually. The company has also been able to settle its debtors faster, with a debtors turnover ratio of 5.85 times in the last five half-yearly periods.

On the other hand, there are some areas of concern for Shristi Infra. The net sales for the quarter were at Rs 14.16 crore, which is a significant decrease of -51.4% compared to the average net sales of the previous four quarters. This indicates a negative trend in sales in the near term. The profit after tax (PAT) for the half-yearly period was at Rs -18.28 crore, showing a decline of -68.47% year on year. The company's interest costs have also increased, which could be a result of increased borrowings.

Moreover, the debt-equity ratio for Shristi Infra is at its highest at -3.07 times and has been consistently growing over the past five half-yearly periods. This suggests that the company is relying more on borrowing to fund its operations, which could lead to a stressed liquidity situation. Additionally, the inventory turnover ratio has been falling, indicating a slower pace of selling inventory.

It is worth noting that the company's non-operating income for the quarter was at its highest in the last five quarters, which could be a result of increased income from non-business activities. However, this may not be sustainable in the long run.

Overall, Shristi Infrastructure Development Corporation's financial performance for the quarter ending September 2024 has been negative, with some areas of strength and weakness. Investors should carefully consider these factors before making any investment decisions.