In the recent quarter, Bonlon Industries posted net sales of ₹242 crore, marking a peak in its quarterly revenue performance. However, this top-line strength contrasts with the company’s profitability indicators. The Profit After Tax (PAT) for the quarter stood at ₹-2.20 crore, representing a significant deviation from the previous four-quarter average. Similarly, the Profit Before Depreciation, Interest, and Taxes (PBDIT) registered at ₹-2.18 crore, the lowest in recent periods. The operating profit to net sales ratio also reflected contraction, recorded at -0.90%, signalling margin pressure within the quarter.
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Bonlon Industries’ Earnings Per Share (EPS) for the quarter was reported at ₹-1.55, the lowest in recent history, underscoring the earnings pressure faced by the company. The Profit Before Tax less Other Income (PBT less OI) also reflected a low of ₹-3.18 crore. These figures collectively indicate a period of financial strain despite the company’s ability to generate record sales revenue. The financial trend score, which had been at 26 three months prior, has adjusted to -3, signalling a shift in the evaluation of the company’s recent financial health.
From a market perspective, Bonlon Industries’ stock price closed at ₹42.69, down 3.20% on the day, with a trading range between ₹42.00 and ₹44.86. The stock’s 52-week high and low stand at ₹57.50 and ₹22.50 respectively, reflecting significant volatility over the past year. When compared to the broader Sensex index, Bonlon Industries’ returns show a mixed pattern: a one-week return of -13.37% contrasts with a year-to-date return of 19.88%, outperforming the Sensex’s 8.36% over the same period. Over longer horizons, the stock’s five-year return of 104.26% surpasses the Sensex’s 91.65%, though the three-year return of -39.92% lags behind the Sensex’s 37.31% gain.
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Bonlon Industries operates within the Non-Ferrous Metals industry, a sector often subject to commodity price fluctuations and global demand cycles. The recent flat financial trend adjustment may reflect broader sectoral pressures or company-specific operational challenges. Investors analysing Bonlon Industries should consider the juxtaposition of record sales against compressed profitability margins and the recent adjustment in the company’s financial trend evaluation.
Overall, the data suggests that while Bonlon Industries has demonstrated resilience in revenue generation, the current quarter’s earnings and margin metrics highlight areas requiring close monitoring. The company’s market capitalisation grade remains modest, and the recent adjustment in its Mojo Score from Hold to Sell indicates a revision in its evaluation framework. This nuanced financial picture underscores the importance of a comprehensive approach when assessing Bonlon Industries’ investment potential in the context of the Non-Ferrous Metals sector and broader market conditions.
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