The company’s financial trend parameter has moved from flat to negative, with the score declining from 2 to -14 over the past three months. This adjustment reflects a complex financial picture where top-line growth contrasts with contraction in operating cash flows and profit margins. Operating cash flow for the year has reached a low of ₹-46.84 crores, signalling challenges in cash generation despite sales momentum.
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Profitability indicators for Shah Metacorp reveal further nuances. The Profit Before Depreciation, Interest and Tax (PBDIT) for the quarter stands at ₹1.65 crores, the lowest recorded in recent periods. Correspondingly, the operating profit to net sales ratio has contracted to 2.47%, marking a significant margin compression. The Profit After Tax (PAT) for the quarter is ₹0.88 crores, reflecting a 70.1% decline compared to the average of the previous four quarters. Earnings Per Share (EPS) has also reached a low of ₹0.01, underscoring the subdued profitability environment.
Tax-adjusted profit before other income (PBT less OI) is reported at ₹0.28 crores, the lowest in the recent quarterly timeline. These figures collectively suggest an adjustment in the evaluation of Shah Metacorp’s financial health, despite the encouraging sales figure.
From a market perspective, Shah Metacorp’s stock price closed at ₹3.97, down 1.00% from the previous close of ₹4.01. The stock’s 52-week trading range spans from ₹2.72 to ₹5.50, with the day’s high and low recorded at ₹4.08 and ₹3.85 respectively. This price movement reflects investor caution amid the mixed financial signals.
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Examining Shah Metacorp’s returns relative to the Sensex reveals a mixed performance over various time horizons. The stock has underperformed the benchmark index in the short term, with a one-week return of -4.80% compared to Sensex’s 0.96%, and a one-month return of -5.25% against Sensex’s 0.86%. Year-to-date and one-year returns also show negative trends for the stock at -10.79% and -8.74%, respectively, while the Sensex posted positive returns of 8.36% and 9.48% over the same periods.
Longer-term data presents a different picture. Over three years, Shah Metacorp’s stock has delivered a 74.52% return, outperforming the Sensex’s 37.31%. However, over five and ten years, the stock’s returns of 59.45% and 49.51% lag behind the Sensex’s 91.65% and 232.28%, respectively. This divergence highlights the stock’s variable performance across different investment horizons.
In summary, Shah Metacorp’s recent quarterly results indicate a complex financial scenario. While net sales have reached a peak, key profitability and cash flow metrics have experienced a downward adjustment, reflecting challenges in operational efficiency and earnings quality. The stock’s recent market performance aligns with these financial trends, showing short-term underperformance relative to the broader market. Investors analysing Shah Metacorp should consider these factors alongside sector dynamics and longer-term historical performance to form a comprehensive view.
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