Sunil Healthcare's Financials Show Negative Performance, Debt and Interest Costs on the Rise

Sunil Healthcare, a microcap pharmaceutical company, recently announced its financial results for the quarter ending June 2024. The company's performance has been deemed negative, with a score of -7, showing a slight improvement from the previous quarter's score of -11.

One of the key areas of concern for Sunil Healthcare is its debtors turnover ratio, which has been consistently falling over the last five half-yearly periods. In the latest half-yearly period, the ratio was at its lowest at 2.22 times, indicating a slower pace of settling its debtors. This could potentially impact the company's cash flow and working capital management.

Another red flag in the financials is the rising interest cost, which has grown by 25.60% over the preceding nine months period. This suggests that the company has increased its borrowings, which could lead to a higher debt burden in the future.

The debt-equity ratio of Sunil Healthcare has also been on the rise, reaching its highest at 0.97 times in the last five half-yearly periods. This indicates that the company is relying more on borrowings to fund its operations, which could put a strain on its liquidity.

Based on these financial indicators, MarketsMOJO has given a 'Strong Sell' call for Sunil Healthcare's stock. Investors should carefully consider these factors before making any investment decisions.