Arihant Capital Reports Positive Financial Results for Q2 2024, Receives 'Hold' Call from MarketsMOJO

Arihant Capital, a smallcap finance company, has recently announced its financial results for the quarter ending September 2024. The company has received a 'Hold' call from MarketsMOJO, a leading financial analysis platform.

According to the financial report, Arihant Capital has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 21 to 12 in the last three months.

One of the key highlights of the financial results is the growth in Profit After Tax (PAT) for the half-yearly period, which has increased by 47.55% year on year, reaching Rs 38.75 crore. The near-term trend for PAT is also positive. Additionally, the company's net sales for the quarter have reached a five-quarter high of Rs 76.38 crore, indicating a positive sales trend in the near term. The company's cash and cash equivalents have also seen a significant increase, reaching a six-half yearly high of Rs 439.00 crore, indicating an improvement in short-term liquidity.

However, there are some areas of concern for Arihant Capital, as highlighted by the financial report. The company's operating cash flow for the year has been the lowest in the last three years, at Rs -29.63 crore. This indicates a decline in cash revenues from business operations. The company's debt-equity ratio has also reached a five-half yearly high of 0.53 times, indicating that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Overall, Arihant Capital has shown positive financial performance in the second quarter of the fiscal year 2024-2025. However, investors should keep an eye on the company's operating cash flow and debt-equity ratio in the coming months.