Surat Trade & Merchantile Shows Positive Growth in Financials, But Some Areas Need Improvement

Surat Trade & Merchantile, a microcap textile company, has recently announced its financial results for the quarter ended December 2023. The company has shown a positive performance with a score of 6 out of 10, an improvement from the previous score of 5 in the last 3 months.

One of the key highlights of the financials is the significant growth in net sales, which has increased by 152.78% year on year to Rs 31.85 crore in the half-yearly period. This indicates a strong sales trend for the company. Additionally, the operating profit (PBDIT) for the quarter has been the highest in the last five quarters at Rs -0.57 crore, showing a positive trend in the near term. The operating profit margin has also improved, reaching its highest at -3.74% in the last five quarters, indicating an increase in the company's efficiency.

However, there are some areas that need improvement for Surat Trade. The profit after tax (PAT) for the nine-month period has decreased by -88.69% year on year to Rs 7.17 crore, showing a negative trend in the near term. Another concern is the non-operating income, which is 114.84% of the profit before tax (PBT). This suggests that the company's income from non-business activities is high, which may not be a sustainable business model.

MarketsMOJO has given a 'Hold' call for Surat Trade's stock, taking into consideration its financial performance and market conditions. Overall, the company has shown positive growth in its financials, but there are some areas that need to be addressed for sustained success in the future. Investors are advised to keep a close watch on the company's performance and make informed decisions.