Nexus Select Trust Reports Q2 FY24-25 Profit Amidst Market Challenges and Stakeholder Concerns

Nexus Select Trust has recently undergone an adjustment in evaluation, reflecting the complexities of its current market position. The company, a significant player in the construction and real estate sector, has reported a profit after tax (PAT) of Rs 110.24 crore for the second quarter of FY24-25, which indicates a notable change compared to previous periods. Additionally, the operating cash flow has reached a challenging point, recorded at Rs -33.37 crore.
Despite these hurdles, Nexus Select Trust has demonstrated some encouraging trends, particularly in net sales growth and a substantial increase in operating profit, which has risen by 144.72%. The stock has been positioned within a mildly bullish range, achieving a return of 1.69% since January 14, 2025, supported by a bullish Bollinger Band trend.

However, the company is also grappling with issues related to management efficiency, as evidenced by a low return on capital employed (ROCE) of 4.35%. Furthermore, there are signs of diminishing promoter confidence, highlighted by a 20.83% reduction in their stake, which now stands at 22.3%. While the company boasts a high dividend yield of 5.8%, this is juxtaposed with an expensive valuation, indicated by a 1.4 enterprise value to capital employed ratio.

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