Sukhjit Starch & Chemicals Reports Strong Financial Performance in Q1 FY25

Sukhjit Starch & Chemicals, a microcap company in the chemicals industry, has recently announced its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, Sukhjit Starch has shown positive performance in the quarter, with a score of 6 out of 10, which is an improvement from the previous quarter’s score of 0. This indicates that the company’s financial health has improved in the last three months.

One of the key factors contributing to this improvement is the company’s operating profit to interest ratio, which has been the highest in the last five quarters at 4.52 times. This shows that Sukhjit Starch is effectively managing its interest payments.

The company’s net sales for the quarter also saw a positive trend, reaching a high of Rs 395.13 crore in the last five quarters. This indicates a strong sales performance in the near term.

In terms of liquidity, Sukhjit Starch has also shown improvement, with its cash and cash equivalents reaching a high of Rs 15.56 crore in the last six half-yearly periods.

Furthermore, the company’s debt-equity ratio has been consistently decreasing in the last five half-yearly periods, reaching a low of 0.67 times. This shows that Sukhjit Starch has been reducing its borrowing in comparison to its equity capital.

In terms of dividend payout, Sukhjit Starch has a high DPR of 25.01% in the last five years, indicating that the company is distributing a higher proportion of its profits as dividends to its shareholders.

Overall, Sukhjit Starch & Chemicals has shown positive financial performance in the quarter ending March 2024, with improvements in key areas such as interest management, sales, liquidity, and debt-equity ratio.