Sinclairs Hotels Reports Mixed Financial Results for Q2 FY25, Highest DPS in 5 Years

Nov 18 2024 10:27 AM IST
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Sinclairs Hotels, a microcap company in the hotel, resort, and restaurant industry, reported a flat performance in the second quarter of fiscal year 2024-25. While the company recorded its highest dividend per share in five years, its net sales, operating profit, and profit before tax were at their lowest in the last five quarters, indicating a negative trend in the near term. MarketsMojo has a 'Sell' call for the company's stock.

Sinclairs Hotels, a microcap company in the hotel, resort, and restaurant industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is ‘Sell’.

According to the financial report, Sinclairs Hotels has shown a flat performance in the second quarter of the fiscal year 2024-25. The company’s score has fallen from -2 to -5 in the last three months.


However, there are some positive aspects to the company’s financials. Sinclairs Hotels has recorded the highest dividend per share (DPS) of Rs 1.00 in the last five years. This indicates that the company is distributing higher dividends from its profits.


On the other hand, there are some areas of concern for Sinclairs Hotels. The company’s net sales for the quarter were at its lowest in the last five quarters, standing at Rs 8.08 crore. This shows a negative trend in the near term. Additionally, the net sales have also decreased by 5.16% year on year (YoY).


The operating profit (PBDIT) for the quarter was also at its lowest in the last five quarters, at Rs 0.76 crore. This indicates a negative trend in the near term for the company’s operating profit. The operating profit margin was also at its lowest in the last five quarters, showing a decline in the company’s efficiency.


Moreover, the profit before tax (PBT) for the quarter was at its lowest in the last five quarters, standing at Rs -0.73 crore. This also shows a negative trend in the near term for the company’s PBT. The non-operating income for the quarter was at its highest in the last five quarters, at Rs 3.73 crore. This income from non-business activities is 124.33% of the PBT, which may not be a sustainable business model for the company.


In conclusion, while Sinclairs Hotels has shown some positive aspects in its financials, there are also some areas of concern that investors should take note of. The company’s stock call by MarketsMOJO is ‘Sell’, and it remains to be seen how the company will perform in the future.


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