Tatva Chintan Pharma Chem's Q2 FY25 Financial Results Show Negative Trends, Receives 'Strong Sell' Rating

Oct 25 2024 07:04 PM IST
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Tatva Chintan Pharma Chem, a smallcap chemicals company, reported negative financial results for the quarter ending September 2024. While the company has shown strong annual operating cash flow, there has been a decline in profit before and after tax, net sales, and operating profit. This has led to a 'Strong Sell' call by MarketsMojo.

Tatva Chintan Pharma Chem, a smallcap company in the chemicals industry, recently announced its financial results for the quarter ending September 2024. The stock has been given a ‘Strong Sell’ call by MarketsMOJO.

The company’s financial performance for the quarter has been negative, with no improvement seen in the last three months. However, there are some positive aspects to note from the Sep 2024 financials. Tatva Chintan has shown a strong operating cash flow annually, with a growth each year in the last three years. This indicates that the company has been able to generate higher cash revenues from its business operations.


On the other hand, there are some areas that are not working in favor of Tatva Chintan based on the Sep 2024 financials. The profit before tax less other income (PBT) for the quarter has fallen by -119.1% compared to the average PBT of the previous four quarters. This shows a very negative trend in the near term. Similarly, the profit after tax (PAT) has also fallen by -110.1% compared to the average PAT of the previous four quarters, indicating a negative trend in the near term.


The net sales for the quarter have also seen a decline of -13.2% compared to the average net sales of the previous four quarters. This is the lowest net sales in the last five quarters, showing a negative trend in the near term. The operating profit (PBDIT) for the quarter is also at its lowest in the last five quarters, with a negative trend in the near term. The operating profit margin has also decreased to its lowest at 6.68%, indicating a deterioration in the company’s efficiency.


Overall, the financial results for the quarter ending September 2024 have not been favorable for Tatva Chintan Pharma Chem. The company’s profitability has declined, and the sales and operating profit have also seen a negative trend. This has resulted in a ‘Strong Sell’ call for the company’s stock by MarketsMOJO.


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