Advik Capital Faces Financial Challenges Amid Mixed Performance Metrics and Rising Debt Concerns

Advik Capital, a microcap player in the Non-Banking Financial Company (NBFC) sector, has recently undergone an evaluation adjustment, reflecting notable shifts in its financial metrics. The company's financial performance for the quarter ending March 2025 has shown a significant decline, with net sales reported at Rs 19.30 crore, indicating a substantial contraction. In contrast, profit before tax (PBT) less other income (OI) has shown growth, reaching Rs 1.30 crore, which highlights some operational resilience.
However, the overall financial landscape appears challenging, as the profit after tax (PAT) for the latest quarter has fallen to Rs -1.22 crore, marking a considerable drop. Additionally, the interest expenses have reached a peak of Rs 3.66 crore, raising concerns about the company's debt servicing capabilities. The quality metrics also reflect a shift, with the quality grade moving to below average, driven by a high debt-to-EBITDA ratio and a modest return on capital employed (ROCE) of 6.61%.

Despite some positive indicators, such as a five-year sales growth rate of 116.13%, the overall assessment of Advik Capital suggests a complex financial situation that warrants close monitoring.

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