Texmo Pipes & Products Reports Mixed Financial Performance in Q1 FY25

Texmo Pipes & Products, a microcap company in the plastic products industry, recently announced its financial results for the quarter ending March 2024. According to the report released on August 13, 2024, the stock call for Texmo Pipes is ‘Sell’ by MarketsMOJO.

The company’s financial performance for the quarter has remained flat, with a score of -3 compared to 3 in the previous quarter. However, there are some positive aspects to note from the financials. Texmo Pipes has shown a strong operating profit to interest ratio of 7.22 times, indicating an improvement in its ability to manage interest payments. Additionally, the company’s cash and cash equivalents have increased to Rs 11.32 crore in the last six half-yearly periods, showing an improvement in short-term liquidity.

On the other hand, there are some concerning factors in the financials. The net sales for the quarter have fallen by -41.79% year on year, indicating a negative sales trend in the near term. Similarly, the profit after tax and profit before tax have also shown a decline of -28.4% and -12.85% respectively, indicating a negative trend in the near term. The company’s debt-equity ratio has also increased to 0.29 times, indicating a higher borrowing to fund its operations and a potentially stressed liquidity situation. Additionally, the debtors turnover ratio has slowed down, with the lowest ratio of 9.59 times in the last five half-yearly periods.

Overall, Texmo Pipes & Products has shown a mixed financial performance in the quarter ending March 2024. Investors are advised to carefully consider these factors before making any investment decisions.