Avadh Sugar's Q3 2024 Results Show Negative Performance, 'Sell' Call from MarketsMOJO

Avadh Sugar & Energy, a smallcap company in the sugar industry, recently declared its financial results for the quarter ending September 2024. According to MarketsMOJO, a leading stock analysis platform, the stock call for Avadh Sugar is 'Sell'.

The company's financial performance for the quarter has been very negative, with a score of -28 compared to -25 in the previous quarter. However, there are some positive aspects to the company's financials based on the September 2024 results.

Avadh Sugar has been able to maintain a low debt-equity ratio of 0.68 times in the last five half yearly periods, indicating a reduction in borrowing compared to equity capital. The company has also shown improvement in its debtors turnover ratio, settling its debtors faster.

On the other hand, the company's net sales for the quarter have fallen by -20.75% year on year, indicating a negative sales trend in the near term. The profit before tax (PBT) has also seen a significant decline of -101.76% year on year, while the profit after tax (PAT) has fallen by -97.1% year on year. The interest cost has also increased, indicating a rise in borrowings.

Avadh Sugar's operating profit to interest ratio is at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. The company's operating cash flow has also been falling in the last three years, and the operating profit margin is at its lowest in the last five quarters, showing a decline in efficiency.

The non-operating income for the quarter is 145.24% of the PBT, which is a cause for concern as it indicates a high income from non-business activities. The earnings per share (EPS) for the quarter is also at its lowest in the last five quarters, showing a decline in profitability and lower earnings for shareholders.

Overall, Avadh Sugar's financial performance for the quarter ending September 2024 has been very negative, with a 'Sell' call from MarketsMOJO. The company's declining sales and profitability, along with a high non-operating income, raise concerns about its sustainable business model.