Sri Nachammai Cotton Mills Reports Negative Performance in Q1, Receives 'Strong Sell' Rating

Sri Nachammai Cotton Mills, a microcap textile company, recently announced its financial results for the quarter ending June 2024. According to the report released on August 8, 2024, the company has seen a negative performance in this quarter. This has resulted in a score of -9, a decrease from the previous quarter's score of -8.

One of the major factors contributing to this decline is the net sales, which have fallen by -25.83% year on year, standing at Rs 17.00 crore. This trend is expected to continue in the near term, as the sales trend is currently very negative.

The company's profit after tax (PAT) for the nine-month period has also seen a decline of -28.72% year on year, with a PAT of Rs -2.05 crore. This negative trend is expected to continue in the near term.

Another concerning factor is the debtors turnover ratio, which is at its lowest in the last five half-yearly periods at 10.77 times. This indicates that the company's pace of settling its debtors has slowed down.

Based on these financials, MarketsMOJO has given a 'Strong Sell' call for Sri Nachammai Cotton Mills' stock. The company's performance in this quarter has not been favorable, and it is important for investors to carefully consider these factors before making any investment decisions.