SMS Pharma Reports Strong Q1 Results, MarketsMOJO Recommends 'Hold' on Stock

SMS Pharmaceuticals, a smallcap company in the pharmaceutical industry, has recently declared its financial results for the quarter ending June 2024. The stock call for the company by MarketsMOJO is 'Hold'.

According to the financials, SMS Pharma has shown positive performance in the quarter, with a growth of 116.97% in Profit After Tax (PAT) compared to the same period last year. The company's PAT trend is also very positive. Additionally, the company's Operating Profit to Interest ratio has been the highest in the last five quarters, indicating an improvement in its ability to manage interest payments.

Furthermore, SMS Pharma's Profit Before Tax less Other Income (PBT) has been consistently growing in the last five quarters, with the latest quarter recording the highest PBT of Rs 20.46 crore. The company's Debt-Equity Ratio has also been decreasing, with the latest half-yearly period showing the lowest ratio of 0.52 times. This indicates that the company has been reducing its borrowing in comparison to its equity capital.

However, there are some areas that need improvement for SMS Pharma. The company's Net Sales for the quarter have fallen by -7.3% compared to the average of the previous four quarters. 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.

Overall, SMS Pharmaceuticals has shown positive financial performance in the quarter ending June 2024, with some areas that need attention. Investors are advised to hold their position in the company's stock, as recommended by MarketsMOJO.