Asit C Mehta Fin's Q3 results show mixed performance, with concerns over profitability and debtors turnover

Asit C Mehta Financial Services Ltd, a microcap IT software company, has recently declared its financial results for the quarter ended December 2023. According to the latest report, the company's stock has been given a 'Sell' call by MarketsMOJO.

The financial performance of Asit C Mehta Fin for the quarter has been flat, with a score of -5 compared to 6 in the previous quarter. However, there are some positive aspects to the company's financials. The net sales for the half-yearly period have shown a growth of 54.93% year on year, indicating a positive sales trend in the near term.

On the other hand, there are some areas of concern for the company. The profit after tax for the quarter has fallen by 62.9% compared to the average of the previous four quarters. The interest cost has also increased by 29.35% quarter on quarter, indicating increased borrowings by the company. This is further supported by the fact that the interest cost is the highest in the last five quarters.

The profit before tax less other income for the quarter is at its lowest in the last five quarters, showing a negative trend in the near term. The earnings per share for the quarter are also at its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

Another concerning aspect is the debtors turnover ratio, which is at its lowest in the last five half-yearly periods. This suggests that the company's pace of settling its debtors has slowed down.

Overall, Asit C Mehta Financial Services Ltd has shown a mixed performance in the quarter ended December 2023. Investors should carefully analyze the company's financials before making any investment decisions.