Stanley Lifestyles' Q2 Financial Results Show Negative Performance, MarketsMOJO Issues 'Sell' Call

Stanley Lifestyles, a smallcap company in the miscellaneous industry, recently declared its financial results for the quarter ending September 2024. According to the data released on November 13, 2024, the company has seen a negative financial performance in the second quarter of the fiscal year 2024-25.

The company's score has fallen from -5 to -10 in the last three months, indicating a decline in its overall performance. This can be attributed to various factors, including a decrease in profit after tax (PAT) and net sales. The PAT for the quarter was Rs 5.70 crore, which is a 23.2% decrease from the average PAT of the previous four quarters. Similarly, the net sales for the quarter were Rs 103.00 crore, a 5.8% decrease from the average net sales of the previous four quarters.

The operating profit (PBDIT) for the quarter was also at its lowest in the last five quarters, indicating a negative trend in the company's near-term performance. The operating profit margin was also at its lowest in the last five quarters, showing a decline in the company's efficiency. The profit before tax (PBT) less other income was also at its lowest in the last five quarters, further highlighting the negative trend in the company's performance.

One concerning aspect of the company's financials is its high non-operating income, which accounts for 63.64% of the PBT. This suggests that the company's income from non-business activities is high, which may not be a sustainable business model. The non-operating income for the quarter was also at its highest in the last five quarters, indicating a potential reliance on non-business activities for income.

Based on these financial results, MarketsMOJO has given a 'Sell' call for Stanley Lifestyles' stock. Investors should carefully consider these factors before making any investment decisions.