Sonal Mercantile Reports Positive Q2 Results, MarketsMOJO Recommends 'Hold' on Stock

Sonal Mercantile, a microcap finance company, has recently announced its financial results for the quarter ending September 2024. According to the data released on November 14, 2024, the company has shown positive performance in the second quarter of the fiscal year 2024-2025.

MarketsMOJO, a leading stock analysis platform, has given a 'Hold' call for Sonal Mercantile's stock. This is based on the company's financial performance in the last three months, where its score has improved from 9 to 11.

The company's operating cash flow has been consistently growing over the last three years, with the highest annual figure of Rs 0.28 crore. This indicates that Sonal Mercantile has been able to generate higher cash revenues from its business operations.

In terms of profitability, the company has shown a positive trend in the last five quarters, with the highest quarterly profit after tax (PAT) of Rs 7.78 crore. This trend is expected to continue in the near future.

Sonal Mercantile's earnings per share (EPS) have also been on the rise, with the highest quarterly figure of Rs 5.28 in the last five quarters. This shows that the company has been able to create higher earnings for its shareholders.

On the other hand, the company's net sales have been on a downward trend in the last five quarters, with the lowest figure of Rs 9.07 crore in the September 2024 quarter. This is a cause for concern, as the near term sales trend is negative.

Furthermore, the company's operating profit (PBDIT) has also shown a negative trend in the last five quarters, with the lowest figure of Rs 9.04 crore. This indicates that the company's near term operating profit trend is also negative.

Overall, Sonal Mercantile has shown positive financial performance in the second quarter of FY24-25, with some areas of concern. Investors are advised to hold their positions in the company's stock, as per MarketsMOJO's recommendation.