Vibhor Steel's Financial Performance Declines, MarketsMOJO Gives 'Sell' Call
Vibhor Steel Tubes, a microcap company in the steel industry, has reported a decline in its financial health for the second quarter of FY24-25. The company's profit before tax and after tax have decreased significantly, along with a decline in net sales and operating profit. MarketsMojo has given a 'Sell' call for the stock.
Vibhor Steel Tubes, a microcap company in the steel industry, recently declared its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for Vibhor Steel is 'Sell'.
According to the financial report, Vibhor Steel has seen a negative performance in the second quarter of the fiscal year 2024-2025. The company's score has fallen from -9 to -19 in the last three months, indicating a decline in its financial health.
The profit before tax (PBT) of Vibhor Steel has also decreased by 74.9% to Rs 1.39 crore compared to the average PBT of the previous four quarters, which was Rs 5.54 crore. This trend is expected to continue in the near term.
Similarly, the profit after tax (PAT) has also fallen by 79.5% to Rs 0.89 crore compared to the average PAT of the previous four quarters, which was Rs 4.35 crore. The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters.
The net sales of Vibhor Steel have also decreased by 9.8% to Rs 236.09 crore compared to the average net sales of the previous four quarters, which was Rs 261.78 crore. The operating profit (PBDIT) has also reached its lowest point in the last five quarters, indicating a negative trend in the company's profitability.
The operating profit margin of Vibhor Steel has also decreased to 2.92%, the lowest in the last five quarters, indicating a decline in the company's efficiency. The earnings per share (EPS) have also decreased to Rs 0.47, the lowest in the last five quarters, showing a decline in profitability and lower earnings for shareholders.
Based on these financial results, MarketsMOJO has given a 'Sell' call for Vibhor Steel. The company's performance in the second quarter of FY24-25 has been negative, and the near-term trend is expected to continue in the same direction. Investors are advised to carefully consider these factors before making any investment decisions.
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