Sunil Healthcare's Q3 Financials Show Decline
Sunil Healthcare, a microcap pharmaceutical company, reported a 5.29% increase in net sales and a 71.88% decline in consolidated net profit for the quarter ended September 2023. Despite a 48.78% improvement in operating profit, interest expenses increased by 3.15%. Financial analysis shows negative performance, with a 'Strong Sell' stock call and a decline in net sales and profit after tax. Short-term liquidity and debtors turnover ratio have also deteriorated. Investors are advised to carefully consider these factors before making any investment decisions.
Sunil Healthcare, a microcap pharmaceutical company, recently announced its financial results for the quarter ended September 2023. The company's net sales for the quarter showed a growth of 5.29% compared to the previous quarter, while its consolidated net profit saw a decline of 71.88%. The operating profit (PBDIT) excluding other income also showed a significant improvement of 48.78% compared to the previous quarter.
However, the company's interest expenses saw a slight increase of 3.15% compared to the previous quarter. Despite this, the operating profit margin (excluding other income) showed an improvement from the previous quarter.
According to MarketsMOJO, a leading financial analysis platform, Sunil Healthcare's stock call is currently a 'Strong Sell'. The company's financial performance for the quarter has been negative, with a score of -18, which has improved from -24 in the last 3 months.
The financial analysis also highlights some areas that are not working for Sunil Healthcare based on its September 2023 financials. The company's net sales and profit after tax (PAT) for the half-yearly period have shown a decline of 27.85% compared to the same period last year. The interest expenses have also increased, indicating a rise in borrowings. Additionally, the company's operating cash flow for the year has been the lowest in the last three years, and its earnings per share (EPS) for the quarter have also declined.
Moreover, Sunil Healthcare's short-term liquidity has deteriorated, with its cash and cash equivalents being the lowest in the last six half-yearly periods. The company's debtors turnover ratio has also slowed down, indicating a delay in settling its debtors.
Overall, Sunil Healthcare's financial performance for the quarter ended September 2023 has been negative, with some concerning trends. Investors are advised to carefully consider these factors before making any investment decisions.
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