Majestic Auto Reports Mixed Financial Trends Amidst Strong Long-Term Performance

Majestic Auto, a microcap player in the diversified commercial services sector, has recently undergone a financial trend adjustment reflecting its performance for the quarter ending September 2025. The company reported a flat financial performance, with its score reflecting a notable shift in its metrics over the past three months.
On the positive side, Majestic Auto has achieved its highest operating cash flow at Rs 99.72 crore and a robust profit after tax of Rs 20.91 crore over the latest six months. The company also boasts a remarkably low debt-equity ratio of 0.02 times and an impressive debtors turnover ratio of 6,062 times, indicating efficient management of receivables. Additionally, the earnings per share for the quarter reached Rs 72.80, showcasing strong profitability on a per-share basis.

However, challenges persist. The profit after tax for the nine-month period has contracted by 22.42%, and key performance indicators such as net sales and operating profit margins have hit their lowest levels. The company reported net sales of Rs 13.12 crore and an operating profit to net sales ratio of just 12.73%. Furthermore, non-operating income constituted a significant portion of profit before tax, raising concerns about the sustainability of earnings.

In terms of market performance, Majestic Auto has shown resilience with a 1-week return of 2.59%, outperforming the Sensex, which recorded a slight decline. Over the past three years, the company has delivered a remarkable return of 170.85%, significantly surpassing the Sensex's 34.72% return in the same period. This long-term performance highlights the company's potential despite current challenges.