Siyaram Silk Mills Reports Negative Performance in Q1 FY25, Experts Recommend Caution.

Siyaram Silk Mills, a smallcap company in the lifestyle industry, recently announced its financial results for the quarter ending June 2024. The company has seen a negative performance in this quarter, with a score of -17 compared to -13 in the previous quarter.

According to the financials, the company’s Profit Before Tax (PBT) has fallen by 274.90% Year on Year (YoY) to Rs -8.71 crore. This is a concerning trend in the near term. The Net Sales for the quarter have also decreased by 13.57% YoY to Rs 306.82 crore, indicating a negative sales trend in the near future.

The company’s ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio at its lowest in the last five quarters. The Operating Profit (PBDIT) for the quarter is also at its lowest in the last five quarters, further highlighting the negative trend in the near term.

The Operating Profit Margin for the quarter is also at its lowest in the last five quarters, indicating a decline in the company’s efficiency. The Non Operating Income for the quarter is 156.74% of the PBT, which is a cause for concern as it shows a high income from non-business activities, which may not be sustainable in the long run.

The Debtors Turnover Ratio for the half-yearly period is also at its lowest in the last five periods, indicating a slowdown in the company’s pace of settling its debtors. The Non Operating Income for the quarter is at its highest in the last five quarters, which may not be sustainable in the long run.

Based on these financials, MarketsMOJO has given a ‘Sell’ call for Siyaram Silk Mills’ stock. It is important for investors to carefully consider these financials before making any investment decisions.