Sukhjit Starch & Chemicals Reports Mixed Financial Results for Q2 FY24-25

Nov 08 2024 09:50 AM IST
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Sukhjit Starch & Chemicals, a microcap company in the chemicals industry, reported flat performance in Q2 FY24-25 with a score of -5. However, the company's Dividend Payout Ratio is at its highest in five years, indicating a higher distribution of profits as dividends. On the other hand, the company's Operating Profit to Interest ratio and PBT have decreased, while interest cost and PAT have increased, raising concerns. Investors are advised to hold and monitor the company's performance.

Sukhjit Starch & Chemicals, a microcap company in the chemicals industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is 'Hold'.

According to the financials, Sukhjit Starch's performance in Q2 FY24-25 has remained flat, with a score of -5 compared to 6 in the previous quarter. However, there are some positive aspects to the company's performance. The Dividend Payout Ratio (DPR) for the company is at its highest in the last five years, standing at 25.01%. This indicates that the company is distributing a higher proportion of its profits as dividends.

On the other hand, there are some areas of concern for Sukhjit Starch. The company's Operating Profit to Interest ratio for the quarter is at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. The Profit Before Tax less Other Income (PBT) has also fallen by 14% compared to the average of the previous four quarters, and the interest cost has increased by 18.36% quarter-on-quarter, indicating increased borrowings. The Profit After Tax (PAT) has also fallen by 5.5% compared to the average of the previous four quarters.

Overall, Sukhjit Starch's financial performance for the quarter ending September 2024 has been mixed. While there are some positive aspects, there are also areas of concern that the company needs to address. Investors are advised to hold their positions and monitor the company's performance in the coming quarters.
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