Zodiac Clothing Company Reports Negative Performance in Q1 FY25, Receives 'Strong Sell' Rating

Zodiac Clothing Company, a microcap textile company, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Strong Sell’ call by MarketsMOJO.

According to the financial report, Zodiac Cloth. Co has seen a negative performance in the quarter, with a score of -10 compared to -9 in the previous quarter. This decline can be attributed to various factors, including a decrease in profit before tax (PBT) and operating profit, as well as a decrease in operating profit margin.

The PBT for the quarter was at Rs -16.16 crore, which is a significant decrease of 43.1% compared to the average PBT of the previous four quarters. This indicates a negative trend in the company’s near-term PBT. Similarly, the operating profit to interest ratio was at its lowest in the last five quarters, indicating a deterioration in the company’s ability to manage interest payments.

The company’s operating profit (PBDIT) for the quarter was also at its lowest in the last five quarters, at Rs -9.21 crore. This shows a negative trend in the near term for the company’s operating profit. Additionally, the operating profit margin was also at its lowest in the last five quarters, indicating a decline in the company’s efficiency.

The PAT for the quarter was at Rs -9.77 crore, which is a decrease of 7.4% compared to the average PAT of the previous four quarters. This shows a negative trend in the near term for the company’s PAT. Furthermore, the company’s cash and cash equivalents were at their lowest in the last six half-yearly periods, indicating a deterioration in short-term liquidity.

Overall, the financial results for the quarter ending June 2024 have not been favorable for Zodiac Clothing Company. Investors should take note of the negative trends and the ‘Strong Sell’ call by MarketsMOJO before making any investment decisions.