Zodiac Clothing Company Reports Highest Net Sales in Five Quarters Despite Challenges

Despite the negative financial performance in the quarter ending March 2024, Zodiac Clothing Company, a microcap textile company, has shown some positive signs in its net sales. The company reported its net sales at Rs 44.06 crore, which is the highest in the last five quarters. This also marks a growth of 22.5% over the average net sales of the previous four quarters. The near-term sales trend for the company is also positive.

However, the company has also faced some challenges in this quarter. The profit before tax less other income (PBT) has fallen by 29.9% over the average PBT of the previous four quarters. The profit after tax (PAT) has also seen a significant decline of 90.8% over the average PAT of the previous four quarters. The interest cost has also increased, indicating a rise in borrowings for the company.

The operating profit (PBDIT) and PBT have both hit their lowest points in the last five quarters, with negative trends in the near term. The earnings per share (EPS) have also decreased, showing a decline in profitability and lower earnings for shareholders.

MarketsMOJO has given a 'Strong Sell' call for Zodiac Clothing Company's stock based on these financial results. However, the company's net sales and positive sales trend may provide some hope for investors. It will be interesting to see how the company performs in the upcoming quarters and if it can turn its financial performance around.