The latest quarter shows Fratelli Vineyards’ operating cash flow for the year reaching its highest level at ₹19.13 crores, signalling improved cash generation capabilities. The debt-equity ratio for the half-year stands at a notably low 0.01 times, reflecting a conservative capital structure. Operating profit to interest ratio for the quarter is at its peak of 0.23 times, indicating a relatively better coverage of interest expenses. Additionally, the company’s PBDIT for the quarter is recorded at ₹0.78 crores, the highest in recent periods, while operating profit to net sales ratio has reached 1.70%, marking a peak in margin efficiency for the quarter. However, the profit before tax less other income remains negative at ₹-4.97 crores, underscoring persistent profitability pressures.
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On the revenue front, Fratelli Vineyards’ net sales for the latest six months stand at ₹82.39 crores, reflecting a contraction of 61.18% compared to the previous period. Correspondingly, the company’s PAT for the same period is negative at ₹-9.13 crores, also showing a decline of 61.18%. Return on capital employed (ROCE) for the half-year is at its lowest point of -1.17%, indicating challenges in generating returns from capital invested. Cash and cash equivalents have diminished to zero, while the debtors turnover ratio for the half-year is at a low 0.06 times, suggesting slower collections or higher receivables relative to sales.
Fratelli Vineyards’ stock price closed at ₹127.10, down 2.53% on the day, with a trading range between ₹127.05 and ₹132.00. The stock’s 52-week high and low are ₹387.90 and ₹102.00 respectively, reflecting significant volatility over the past year. When compared to the Sensex, which has shown positive returns across multiple time frames, Fratelli Vineyards’ stock has underperformed notably. Year-to-date returns for the stock are -61.95%, contrasting with the Sensex’s 8.36% gain. Over one year, the stock’s return is -54.28%, while the Sensex has appreciated by 9.48%. However, longer-term returns over three and five years show the stock outperforming the benchmark, with gains of 216.96% and 592.64% respectively, compared to Sensex returns of 37.31% and 91.65% over the same periods.
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In summary, Fratelli Vineyards’ recent quarterly financial trend adjustment reflects a partial easing of prior negative pressures, with improvements in operating cash flow, margin ratios, and interest coverage. Nonetheless, the company continues to face headwinds in sales growth, profitability, and capital returns. Investors analysing Fratelli Vineyards should consider these mixed signals in the context of the broader beverages sector and market conditions, alongside the stock’s historical performance and volatility.
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