STEL Holdings Reports Positive Financial Results, But Operating Cash Flow a Concern

This is a concern.
STEL Holdings, a microcap trading company, has recently announced its financial results for the quarter ending September 2024. The company has shown a positive performance in this quarter, with a significant improvement in its financial score from -7 to 15 in the last three months.

One of the key highlights of the financial report is the growth in Profit After Tax (PAT) for the half-yearly period, which has increased by 80.43% year on year, reaching Rs 5.81 crore. This is a very positive trend for the company. Additionally, the Net Sales for the quarter have also shown a significant growth of 130.9% compared to the average Net Sales of the previous four quarters, reaching Rs 7.78 crore. This indicates a strong sales trend in the near term.

Another positive aspect of the financial report is the growth in Profit Before Tax less Other Income (PBT) for the quarter, which has increased by 74.1% compared to the average PBT of the previous four quarters, reaching Rs 7.64 crore. This shows a positive trend in the near term for the company.

However, one area of concern for STEL Holdings is its Operating Cash Flow, which has been consistently falling over the last three years, reaching its lowest at Rs 12.03 crore annually. This indicates a decline in the company's cash revenues from business operations, which is a cause for concern.

Overall, the financial results for the quarter ending September 2024 show a positive performance for STEL Holdings, with strong growth in key areas. However, the declining Operating Cash Flow is something that the company needs to address in order to sustain its growth in the long term. MarketsMOJO has given a 'Hold' call for the company's stock, indicating a neutral stance for investors.