Sri Lakshmi Saraswathi Textiles (Arni) Reports Decline in Financial Performance, Receives 'Strong Sell' Rating

Sri Lakshmi Saraswathi Textiles (Arni) has recently released its financial results for the quarter ending March 2024. The company, which operates in the textile industry and is classified as a microcap, has seen a significant decline in its financial performance.

According to the latest report, the company's net sales for the quarter have fallen by 26.8% compared to the average net sales of the previous four quarters. This is a concerning trend, indicating a negative near-term sales outlook for the company.

The profit after tax (PAT) for the quarter has also seen a decline of 23.9% compared to the average PAT of the previous four quarters. This is a worrying trend, as it shows a negative near-term profitability outlook for the company.

Furthermore, the company's operating cash flow has been consistently falling over the last three years, with the latest figure being the lowest at Rs 3.76 crore. This indicates a decline in the company's cash revenues from business operations.

In addition, the net sales for the quarter have been consistently falling over the last five quarters, with the latest figure being the lowest at Rs 23.27 crore. This is another concerning trend, indicating a negative near-term sales outlook for the company.

The operating profit (PBDIT) for the quarter has also been consistently falling over the last five quarters, with the latest figure being the lowest at Rs -4.40 crore. This shows a negative near-term operating profit trend for the company.

The company's operating profit margin for the quarter has also been consistently declining over the last five quarters, with the latest figure being the lowest at -18.91%. This indicates a deterioration in the company's efficiency.

Moreover, the profit before tax less other income (PBT) for the quarter has been consistently falling over the last five quarters, with the latest figure being the lowest at Rs -6.23 crore. This is another worrying trend, showing a negative near-term PBT outlook for the company.

Lastly, the earnings per share (EPS) for the quarter have been consistently declining over the last five quarters, with the latest figure being the lowest at Rs -18.59. This indicates a decline in profitability and lower earnings for shareholders.

Based on these financial results, MarketsMOJO has given a 'Strong Sell' call for Sri Lakshmi Saraswathi Textiles (Arni) stock. Investors should carefully consider these financial trends before making any investment decisions.