Visaka Industries' Q3 Financial Results Show Negative Trends, Investors Advised to Hold

Visaka Industries, a smallcap company in the construction material industry, recently declared its financial results for the quarter ending December 2023. According to MarketsMOJO, the stock call for Visaka Industries is 'Hold'.

The company's financial performance for the quarter has been very negative, with a score of -23, which has improved from -35 in the last 3 months. The profit before tax (PBT) less other income has fallen by -563.27% year on year (YoY) to Rs -11.35 crore, indicating a very negative trend in the near term. Similarly, the profit after tax (PAT) has also fallen by -313.7% YoY to Rs -7.16 crore, with a very negative trend in the near term.

One of the major concerns for Visaka Industries is the rising interest cost, which has grown by 26.18% quarter on quarter (QoQ) to Rs 10.46 crore. This signifies increased borrowings by the company, which has also led to a deteriorating operating profit to interest ratio, which is at its lowest in the last five quarters. The company's debt-equity ratio has also been consistently increasing in the last five half yearly periods, indicating a stressed liquidity situation.

In addition, the company's earnings per share (EPS) for the quarter is at its lowest in the last five quarters at Rs -0.83, showing a decline in profitability and lower earnings for shareholders. The cash and cash equivalents for the half yearly period is also at its lowest in the last six periods, indicating a deteriorating short term liquidity situation for the company.

Overall, the financial results for the quarter ending December 2023 have not been favorable for Visaka Industries, with various factors such as declining profitability, rising interest costs, and increasing debt levels. Investors are advised to hold their position in the stock, as recommended by MarketsMOJO.