Archidply Industries Reports Negative Financial Results for Q4 2023, MarketsMOJO Calls for 'Sell'

Archidply Industries, a microcap company in the wood products industry, has recently declared its financial results for the quarter ending December 2023. According to the report released on January 25, 2024, the stock call for the company is 'Sell' by MarketsMOJO.

The financial performance of Archidply Industries for the quarter has been negative, with a score of -17 compared to -5 in the previous quarter. This indicates a decline in the company's performance over the last three months.

The profit before tax (PBT) for the quarter has fallen by 71.7% to Rs 0.91 crore, compared to the average PBT of the previous four quarters which was Rs 3.22 crore. The trend for PBT in the near term is also negative. Similarly, the profit after tax (PAT) has fallen by 42.0% to Rs 1.46 crore, compared to the average PAT of the previous four quarters which was Rs 2.52 crore. The near term trend for PAT is also negative.

The company's ability to manage interest payments has deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters. The interest cost has also increased by 10.23% quarter on quarter, indicating increased borrowings by the company.

The operating profit (PBDIT) for the quarter is the lowest in the last five quarters at Rs 3.79 crore, and the operating profit margin is also at its lowest at 3.62%. This indicates a decline in the company's efficiency.

The non-operating income for the quarter is 56.87% of the PBT, which is a cause for concern as it shows a high income from non-business activities, which may not be sustainable in the long run. The earnings per share (EPS) for the quarter is also at its lowest in the last five quarters at Rs 0.73, indicating a decline in profitability and lower earnings for shareholders.

The non-operating income for the quarter is also at its highest in the last five quarters at Rs 1.20 crore, which may not be sustainable in the long run. Overall, the financial results for the quarter ending December 2023 for Archidply Industries have been negative, and the stock call by MarketsMOJO is 'Sell'.