Vindhya Telelinks Receives 'Sell' Call from MarketsMOJO After Negative Q1 Results

Vindhya Telelinks, a smallcap company in the cable industry, recently announced its financial results for the quarter ending June 2024. The company has received a 'Sell' call from MarketsMOJO based on its negative financial performance in the quarter. According to the financials, Vindhya Telelinks has seen a decline in its score from 10 to -6 in the last 3 months. However, there are some positive aspects to the company's performance. The Debtors Turnover Ratio for the half-yearly period is at its highest at 4.40 times and has grown consistently in the last five half-yearly periods. This indicates that the company has been able to settle its debtors faster. The company has also generated a high Operating Cash Flow of Rs 441.12 Cr annually in the last three years, indicating strong cash revenues from business operations. Additionally, the company's Cash and Cash Equivalents for the half-yearly period is at its highest at Rs 171.04 cr, showing an improvement in short-term liquidity. The Debt-Equity Ratio for the half-yearly period is also at its lowest at 0.12 times, indicating a reduction in borrowing compared to equity capital. However, there are some areas of concern for Vindhya Telelinks. The Profit Before Tax less Other Income (PBT) for the quarter has fallen by -49.16% Year on Year (YoY), and the Profit After Tax (PAT) has also fallen by -49.9% YoY. The company's ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio at its lowest in the last five quarters. The Operating Profit Margin has also fallen each quarter in the last five quarters, indicating a decline in efficiency. The Net Sales for the quarter are at their lowest in the last five quarters, and the Operating Profit (PBDIT) is also at its lowest in the last five quarters. The Earnings per Share (EPS) for the quarter are also at their lowest in the last five quarters, showing a decline in profitability and lower earnings for shareholders. Overall, Vindhya Telelinks has shown a negative financial performance in the quarter ending June 2024, leading to a 'Sell' call from MarketsMOJO. Investors should carefully consider these financials before making any investment decisions.