Nagpur Power & Industries Reports Record Q2 Growth Amid Long-Term Viability Concerns

Jan 17 2025 06:39 PM IST
share
Share Via
Nagpur Power & Industries has recently adjusted its evaluation, reflecting its current market dynamics. The company reported significant financial achievements for Q2 FY24-25, including a substantial net profit increase and record net sales. However, it faces challenges related to long-term fundamental strength and debt servicing capabilities.
Nagpur Power & Industries has recently undergone an adjustment in evaluation, reflecting the company's current market dynamics and operational metrics. The microcap firm, operating within the Ferro & Silica Manganese sector, has reported notable financial achievements for the second quarter of FY24-25. The company recorded a substantial net profit growth of 362.3% in September 2024, alongside a record net sales figure of Rs 18.08 crore and the highest-ever PBDIT of Rs 2.32 crore.

In terms of operational efficiency, the inventory turnover ratio reached a peak of 5.02 times, suggesting effective inventory management practices. The stock has also shown a bullish technical positioning, having transitioned from a mildly bullish trend earlier in January 2025, with returns of 17.49% generated since that time.

However, despite these positive indicators, Nagpur Power & Industries faces challenges that could impact its long-term viability. The company has demonstrated weak long-term fundamental strength, with a 2.71% CAGR growth in operating profits over the past five years. Additionally, concerns regarding the company's ability to service its debt are evident, as indicated by a negative EBIT to interest ratio of -2.75. While the stock has delivered consistent returns over the last three years, it remains a complex investment due to the underlying risks associated with negative operating profits.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News