Manomay Tex India Faces Financial Challenges Amid Sales Growth and Rising Costs
Manomay Tex India, a microcap in the Garments & Apparels sector, has experienced a recent evaluation adjustment due to shifts in its financial performance. While net sales grew significantly, rising interest expenses and declining profitability metrics have raised concerns about the company's financial management and overall stability.
Manomay Tex India, a microcap player in the Garments & Apparels industry, has recently undergone an evaluation adjustment that reflects notable shifts in its financial landscape. The company reported a decline in its financial performance for the quarter ending March 2025, which has influenced its overall score. Despite a robust growth in net sales, which reached Rs 541.53 crore, marking a 22.33% increase, the company faced challenges with its profitability metrics. The profit after tax (PAT) for the nine-month period stood at Rs 14.15 crore, showing a growth of 33.62%. However, the interest expenses surged to Rs 26.58 crore, a significant rise of 69.84%, which has raised concerns regarding the company's ability to manage its debt effectively.
The operating profit to interest ratio was recorded at its lowest point of 2.29 times, while the PAT for the quarter fell to Rs 3.33 crore, reflecting a decline of 17.8%. Additionally, the company's earnings per share (EPS) reached a low of Rs 1.84.
In terms of valuation, Manomay Tex India is positioned attractively with a price-to-earnings (PE) ratio of 16.76 and a return on capital employed (ROCE) of 11.84%. However, the stock has underperformed compared to the broader market, with a year-to-date return of -21.97% against a 5.02% gain in the Sensex.
Overall, the recent evaluation adjustment highlights the complexities within Manomay Tex India's financial performance, driven by both growth in sales and rising costs.
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