Sumedha Fiscal Services reports strong Q2 results, receives 'Hold' call from MarketsMOJO.

Sumedha Fiscal Services, a microcap finance company, has recently declared its financial results for the quarter ending September 2024. The company has received a 'Hold' call from MarketsMOJO, a leading financial analysis platform.

According to the financials, Sumedha Fiscal has shown positive performance in the second quarter of the fiscal year 2024-25. The company's score has improved from 20 to 13 in the last three months.

The company's Profit After Tax (PAT) for the quarter was Rs 3.04 crore, which is a significant growth of 61.3% compared to the average PAT of the previous four quarters. The net sales for the quarter were also at its highest at Rs 34.15 crore, showing a positive trend in the near term.

Sumedha Fiscal's earnings per share (EPS) for the quarter were at its highest at Rs 3.81, indicating an increase in profitability and creating higher earnings for shareholders. The company's cash and cash equivalents for the half-yearly period were also at its highest at Rs 7.96 crore, showing an improvement in short-term liquidity.

However, there are some areas that need improvement for Sumedha Fiscal. The Profit Before Tax less Other Income (PBT) for the quarter has fallen by -48.1% compared to the average PBT of the previous four quarters. The company's operating profit (PBDIT) for the quarter was also at its lowest in the last five quarters, and the operating profit margin has deteriorated.

Moreover, the company's non-operating income for the quarter was 75.39% of the PBT, which indicates a high income from non-business activities. This may not be a sustainable business model for the company.

Overall, Sumedha Fiscal has shown positive financial performance in the second quarter of the fiscal year 2024-25, but there are some areas that need improvement. Investors are advised to hold their stocks and keep an eye on the company's future financial results.