Thangamayil Jewellery's Q2 FY24-25 financials show mixed results, with positive cash flow and sales but declining profitability.

Thangamayil Jewellery, a midcap company in the diamond and gold jewellery industry, recently declared its financial results for the quarter ending September 2024. According to the data, the company has seen a negative financial performance in Q2 FY24-25, with a score of -7 compared to 21 in the previous quarter.

However, there are some positive aspects to the company's financials. Thangamayil Jewellery has shown a strong operating cash flow, with the highest annual amount of Rs 330.38 crore and consistent growth over the past three years. The net sales for the first half of the year have also increased by 23.01% year on year, indicating a positive sales trend in the near term. Additionally, the company has a strong cash position with Rs 176.58 crore in cash and cash equivalents, showing an improvement in short-term liquidity. The debtors turnover ratio has also been consistently high, indicating that the company has been able to settle its debtors faster.

On the other hand, there are some areas of concern for Thangamayil Jewellery. The profit before tax less other income (PBT) for the quarter has fallen by -157.7% compared to the average PBT of the previous four quarters. The same trend can be seen in the profit after tax (PAT), which has fallen by -157.6% compared to the average PAT of the previous four quarters. The operating profit (PBDIT) for the quarter is also at its lowest in the last five quarters, indicating a negative trend in the near term. The operating profit margin has also decreased to its lowest at -0.63%, showing a decline in the company's efficiency. The earnings per share (EPS) for the quarter are also at its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

Based on these financial results, MarketsMOJO has given a 'Hold' call for Thangamayil Jewellery's stock. While the company has some positive aspects, the negative trends in profitability and efficiency are a cause for concern. Investors are advised to carefully monitor the company's performance in the upcoming quarters before making any investment decisions.