Alankit Reports Positive Financial Performance in Q1 FY25, MarketsMOJO Recommends Hold

Alankit, a microcap company in the finance/NBFC industry, has recently declared its financial results for the quarter ending June 2024. According to the report released on July 27, 2024, the stock call for Alankit by MarketsMOJO is ‘Hold’.

Despite a slight decrease in its overall score from 10 to 8 in the last 3 months, Alankit has shown positive financial performance in the quarter. The company’s Profit Before Tax (PBT) has grown by 72.24% year on year, with a very positive trend in the near term. Similarly, the Profit After Tax (PAT) has also shown a growth of 56.4% year on year, with a positive trend in the near term. The Net Sales have also increased by 27.38% year on year, with a positive trend in the near term.

In terms of liquidity, Alankit has shown improvement with its Cash and Cash Equivalents reaching the highest at Rs 68.27 crore in the last six half-yearly periods. However, the company’s Non-Operating Income is 36.29% of its PBT, indicating a high income from non-business activities, which may not be a sustainable business model.

Overall, Alankit has shown positive financial performance in the quarter ending June 2024, with improvements in key areas such as PBT, PAT, and Net Sales. However, the company’s reliance on non-business income may be a cause for concern. Investors are advised to hold their stock in Alankit for now, as recommended by MarketsMOJO.