Transcorp Intl. Announces Q2 Financial Results, Receives 'Strong Sell' Rating from MarketsMOJO

Transcorp International, a microcap trading company, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO.

According to the financial report, Transcorp Intl. has shown a flat performance in the second quarter of the fiscal year 2024-25. The company's score has decreased from 12 to 4 in the last three months.

However, there are some positive aspects to the company's financials. The cash and cash equivalents have seen a significant increase, with the highest amount of Rs 55.04 crore in the last six half-yearly periods. This shows an improvement in short-term liquidity for the company. Additionally, the company has been distributing higher dividends from its profits, with the highest dividend per share (DPS) of Rs 0.30 in the last five years. The dividend payout ratio (DPR) has also been consistently high at 173.14% in the last five years, indicating that the company is distributing a higher proportion of its profits as dividends.

On the other hand, there are some concerning factors in Transcorp Intl.'s financials. The profit after tax (PAT) for the quarter has fallen by 113.4% compared to the average PAT of the previous four quarters. This is a negative trend in the near term. The company's operating cash flow has also been consistently decreasing in the last three years, with the lowest amount of Rs -14.14 crore in the last year. The net sales for the half-yearly period have also shown a negative trend, with a growth rate of -28.54% year on year. The company's non-operating income is also high, at 529.17% of the profit before tax (PBT), which may not be a sustainable business model. Additionally, the company's debtors turnover ratio has slowed down, indicating a delay in settling its debtors.

In conclusion, while Transcorp International has shown some positive aspects in its financials, there are also some concerning factors that investors should consider before making any investment decisions. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO, and it is important for investors to carefully analyze the company's financial performance before making any decisions.