Smallcap company L G Balakrishnan & Bros reports strong financial performance in Q2 2024

L G Balakrishnan & Bros, a smallcap company in the engineering industry, has recently declared its financial results for the quarter ending September 2024. The stock has been given a 'Hold' call by MarketsMOJO.

The company has shown positive financial performance in the second quarter of the fiscal year 2024-2025, with a score of 8 compared to -3 in the previous three months. This indicates an improvement in the company's overall financial health.

One of the key factors contributing to this positive performance is the company's strong operating cash flow, which has been consistently growing over the past three years. In the last annual report, the company reported the highest operating cash flow of Rs 342.75 crore, indicating a strong ability to generate cash from its business operations.

Another positive aspect is the company's inventory turnover ratio, which has been consistently increasing over the past five half-yearly periods. This indicates that the company has been able to sell its inventory at a faster rate, resulting in better cash flow and profitability.

In terms of sales, the company has reported its highest quarterly net sales of Rs 660.93 crore in the last five quarters, showing a positive trend in the near term.

The company's operating profit (PBDIT) has also seen a positive trend in the near term, with the highest reported figure of Rs 110.00 crore in the last five quarters. Similarly, the profit before tax (PBT) and profit after tax (PAT) have also shown a positive trend, with the highest reported figures of Rs 85.72 crore and Rs 75.13 crore respectively in the last five quarters.

This positive financial performance has also translated into higher earnings per share (EPS) for shareholders, with the company reporting the highest EPS of Rs 24.31 in the last five quarters.

Overall, L G Balakrishnan & Bros has shown a strong financial performance in the recent quarter, with positive trends in key financial indicators. This bodes well for the company's future growth and profitability.