Umang Dairies' Q2 FY24-25 Financial Results Show Negative Performance, Receives 'Strong Sell' Rating from MarketsMOJO
Umang Dairies, a microcap company in the FMCG industry, reported negative financial results for the quarter ending September 2024. The company's net sales decreased by -24.3% and its operating profit to interest ratio is at its lowest in the last five quarters. MarketsMojo has given a 'Strong Sell' call for the company.
Umang Dairies, a microcap company in the FMCG industry, recently declared its financial results for the quarter ending September 2024. According to the report released on November 6, 2024, the company's stock has been given a 'Strong Sell' call by MarketsMOJO.
The financial performance of Umang Dairies for the quarter Q2 FY24-25 has been negative, with a score of -7 compared to -3 in the previous quarter. This indicates a decline in the company's overall performance.
One of the major factors contributing to this decline is the decrease in net sales. The company's net sales for the quarter were Rs 49.10 crore, which is a significant drop of -24.3% compared to the average net sales of the previous four quarters, which stood at Rs 64.85 crore. This trend in sales is expected to continue in the near term.
Another concerning aspect is the company's operating profit to interest ratio, which is at its lowest in the last five quarters at -1.48 times. This indicates a deteriorating ability to manage interest payments.
The half-yearly profit after tax (PAT) for Umang Dairies stands at Rs -1.07 crore, showing a decline of -26.90% year on year. The near term trend for PAT is also negative.
In the last five quarters, the company's net sales have been at its lowest in the quarter ending September 2024 at Rs 49.10 crore. This further supports the negative sales trend in the near term.
Based on these financial results, MarketsMOJO has given a 'Strong Sell' call for Umang Dairies. Investors are advised to carefully consider these factors before making any investment decisions.
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