Ugro Capital's Q2 results show positive performance, but concerns remain for investors

Ugro Capital, a smallcap finance company, has recently declared its financial results for the quarter ended September 2024. The company has shown positive performance in this quarter, with a score of 12 out of 15, an improvement from the previous quarter's score of 11.

The company's net sales for the quarter were the highest in the last five quarters, at Rs 330.16 crore. This shows a positive trend in the company's sales performance in the near term. Similarly, the operating profit (PBDIT) for the quarter was also the highest in the last five quarters, at Rs 191.22 crore. This indicates a positive trend in the company's operating profit in the near term. The profit after tax (PAT) for the quarter was also the highest in the last five quarters, at Rs 35.52 crore, showing a positive trend in the company's profitability.

However, there are some areas that need improvement for Ugro Capital. The company's operating cash flow has been consistently falling in the last three years, with the lowest being Rs -1,534.95 crore in the last year. This indicates a decline in the company's cash revenues from business operations. Additionally, the company's non-operating income has increased in the last five quarters, which may not be sustainable in the long term.

MarketsMOJO has given a 'Sell' call for Ugro Capital's stock, based on its financial performance in the quarter ended September 2024. Investors should carefully consider these factors before making any investment decisions.