Weizmann's Q2 2024 Financial Results Show Significant Decline in Sales and Profitability

Weizmann, a microcap textile company, has recently declared its financial results for the quarter ending June 2024. According to the report, the company has seen a very negative performance in this quarter, with a score of -20 compared to 7 in the previous quarter.

One of the major factors contributing to this decline is the decrease in net sales, which have fallen by 31.7% compared to the average of the previous four quarters. This trend is expected to continue in the near term. Similarly, the profit before tax (PBT) has also decreased by 50% compared to the average of the previous four quarters, indicating a negative trend in the company's financials.

The operating profit margin has also hit a low of 10.01%, with a decline in each of the last five quarters. This suggests a deterioration in the company's efficiency. The profit after tax (PAT) for the half-yearly period has also seen a negative growth of 34.16% year on year, indicating a negative trend in the near term.

The company's operating cash flow has also been on a decline, with the lowest figure of Rs 7.42 crore in the last three years. This indicates a decrease in cash revenues from business operations. The net sales for the quarter have also hit a low of Rs 20.98 crore, with a negative trend in the near term.

Similarly, the operating profit (PBDIT) and PBT for the quarter have also hit a low of Rs 2.10 crore and Rs 1.42 crore respectively. This shows a negative trend in the company's profitability. The earnings per share (EPS) have also decreased to Rs 0.53, indicating a decline in profitability and lower earnings for shareholders.

In terms of liquidity, the company's cash and cash equivalents have hit a low of Rs 1.12 crore in the last six half-yearly periods. This suggests a deterioration in short-term liquidity. Additionally, the dividend payout ratio (DPR) has also hit a low of 8.85% in the last five years, indicating that the company is distributing a lower proportion of its profits as dividends.

Overall, Weizmann's financial performance for the quarter ending June 2024 has been deemed as very negative by MarketsMOJO, with a recommendation to sell the stock. The company's declining sales, profitability, and liquidity are major concerns that investors should take into consideration before making any investment decisions.