Swadeshi Polytex Reports Positive Financial Performance in Q1, But Concerns Remain

Swadeshi Polytex, a microcap textile company, has recently announced its financial results for the quarter ending June 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Swadeshi Polytex has shown positive performance in the quarter, with a score of 6 out of 10. This is a slight decrease from the previous quarter's score of 9.

One of the key factors contributing to the positive performance is the company's net sales, which have grown by 77.69% year on year to reach Rs 54.55 crore. This is a significant increase and the near-term sales trend is also very positive. Additionally, the company has shown a consistent growth in its operating cash flow over the last three years, with the highest amount of Rs 43.87 crore generated in the last year.

However, there are some areas of concern for Swadeshi Polytex. The company's profit after tax (PAT) for the half-yearly period has decreased by 92.86% year on year, which is a significant decline. The non-operating income for the quarter is also high, at 155.83% of the profit before tax (PBT). This indicates that the company's income from non-business activities is not sustainable in the long run.

Moreover, the non-operating income for the quarter is the highest in the last five quarters, which raises questions about the sustainability of this trend.

Overall, Swadeshi Polytex has shown positive financial performance in the quarter ending June 2024, with a few areas of concern. Investors are advised to hold their stock and keep a close eye on the company's future financial reports.