Universal Autofoundry's Q2 Financial Results Receive Strong Sell Rating from MarketsMOJO

Universal Autofoundry, a microcap company in the castings/forgings industry, recently announced its financial results for the quarter ending September 2024. The results, declared on November 14, 2024, have received a "Strong Sell" rating from MarketsMOJO. According to the financial report, Universal Auto. has seen a negative performance in the second quarter of the fiscal year 2024-2025. However, there has been a slight improvement in the company's score, which has gone from -15 to -10 in the last three months. The financials for the quarter have highlighted some areas that are not working in favor of Universal Auto. For instance, the company's Profit After Tax (PAT) for the half-yearly period stands at Rs 2.00 crore, showing a decline of 57.36% compared to the same period last year. The near-term trend for PAT is also negative. Another concerning factor is the company's Cash and Cash Equivalents, which have reached a low of Rs 0.02 crore in the last six half-yearly periods. This indicates a deterioration in short-term liquidity for Universal Auto. Furthermore, the Debtors Turnover Ratio for the half-yearly period is at its lowest at 4.35 times in the last five half-yearly periods. This suggests that the company's pace of settling its debtors has slowed down. Overall, the financial results for the quarter ending September 2024 have not been favorable for Universal Autofoundry. With a "Strong Sell" rating from MarketsMOJO, it is evident that the company needs to address these issues and work towards improving its financial performance in the future.