Active Clothing Co Reports Strong Q2 FY24-25 Metrics Amid Financial Challenges

Active Clothing Co, a microcap player in the textile industry, has recently undergone an evaluation adjustment reflecting changes in its underlying financial metrics and market position. The company reported notable figures for the second quarter of FY24-25, with operating cash flow reaching Rs 20.77 crore and net sales amounting to Rs 81.43 crore. Additionally, the profit before depreciation, interest, and taxes (PBDIT) for the quarter peaked at Rs 8.03 crore.
The stock's technical indicators, including MACD and Bollinger Bands, suggest a favorable market sentiment. Active Clothing Co's return on capital employed (ROCE) stands at 8.5, and it is viewed as fairly valued with an enterprise value to capital employed ratio of 1.8. Over the past year, the stock has generated a return of 39.61%, accompanied by a profit increase of 61.2%. However, the company is navigating challenges, including a high debt to EBITDA ratio of 4.65 times and a low average return on equity of 5.47%, which may indicate some long-term fundamental weaknesses.

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