SMS Lifesciences India reports strong financial performance in Q1 2024

SMS Lifesciences India, a microcap pharmaceutical company, has recently announced its financial results for the quarter ending June 2024. The company has shown a very positive performance in this quarter, with a significant improvement in its financial score from 18 to 29 in the last three months.

One of the key highlights of the financial results is the company's operating profit to interest ratio, which is the highest at 6.79 times and has been growing consistently in the last five quarters. This indicates that SMS Lifesciences has been able to effectively manage its interest payments, which is a positive sign for investors.

The company's profit before tax (PBT) less other income has also shown a remarkable growth of 405.39% year on year, with a very positive trend in the near term. Similarly, the profit after tax (PAT) has grown by 488.9% year on year, with a positive trend in the near term.

SMS Lifesciences has also achieved its highest operating profit (PBDIT) of Rs 16.29 crore in this quarter, with a consistent growth in the last five quarters. The PBT and PAT have also reached their highest levels at Rs 10.20 crore and Rs 7.00 crore respectively, with a positive trend in the near term.

The company's net sales have also shown a positive growth of 23.98% year on year, with the highest sales of Rs 92.55 crore in the last five quarters. This indicates a positive trend in the near term for the company's sales.

On the other hand, the debtors turnover ratio has been the lowest at 5.96 times and has been falling consistently in the last five half yearly periods. This suggests that the company's pace of settling its debtors has slowed down. Additionally, the cash and cash equivalents have also been the lowest at Rs 1.49 crore in the last six half yearly periods, indicating a deterioration in short term liquidity.

Overall, SMS Lifesciences India has shown a very positive financial performance in the quarter ending June 2024, with strong growth in key areas such as operating profit, PBT, PAT, and net sales. However, the company needs to address its slow pace of settling debtors and improve its short term liquidity for sustained growth in the future. Based on these financial results, MarketsMOJO has given a 'Hold' call for SMS Lifesciences' stock.