Texmaco Infrastructure & Holdings: Mixed Financial Results Raise Concerns for Investors

Texmaco Infrastructure & Holdings, a smallcap company in the railway industry, recently announced its financial results for the quarter ending September 2024. According to the data, the company's performance has remained flat in the quarter, with a score of 3 out of 10, compared to 9 in the previous quarter. However, there are some positive aspects to the company's financials. Texmaco has shown a strong operating cash flow of Rs 3.46 crore annually, with a consistent growth over the past three years. The company has also recorded its highest quarterly profit after tax (PAT) of Rs 2.63 crore in the last five quarters, indicating a positive trend in the near term. Additionally, Texmaco has also shown an increase in earnings per share (EPS) in the last five quarters, creating higher earnings for its shareholders. On the other hand, there are some areas of concern for Texmaco. The company's quarterly profit before tax (PBT) less other income has fallen by 211.63% year on year, with a negative trend in the near term. The operating profit (PBDIT) has also been at its lowest in the last five quarters, with a negative trend. This has resulted in a decrease in the operating profit margin, indicating a deterioration in the company's efficiency. Furthermore, the company's non-operating income is 233.11% of its PBT, which may not be a sustainable business model. The recent increase in non-operating income to Rs 7.04 crore in the last five quarters also raises concerns about its sustainability. In conclusion, while Texmaco Infrastructure & Holdings has shown some positive aspects in its financials, there are also some areas of concern that investors should consider before making any decisions. MarketsMOJO has given a 'Sell' call for the company's stock based on its current financial performance.