B A G Films & Media's Q3 Financial Results Show Negative Trend, MarketsMOJO Gives 'Sell' Call

B A G Films & Media, a microcap company in the TV broadcasting and software industry, recently announced its financial results for the quarter ending December 2023. According to the data released on February 12, 2024, the company's performance has remained flat with a score of -2, a significant decrease from 34 in the previous quarter.

The company's net sales for the quarter were at Rs 23.19 crore, a decline of 31.2% compared to the average net sales of the previous four quarters. This indicates a negative trend in the company's sales in the near term. Similarly, the profit before tax less other income (PBT) for the quarter was at Rs -1.26 crore, a decrease of 126.2% from the average PBT of the previous four quarters. The profit after tax (PAT) also saw a decline of 123.2% from the average PAT of the previous four quarters.

The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio at its lowest in the last five quarters. The net sales for the quarter were also at its lowest in the last five quarters, indicating a negative trend in sales. The interest cost has also increased by 18.03% quarter-on-quarter, indicating increased borrowings.

The operating profit (PBDIT) for the quarter was at its lowest in the last five quarters, and the operating profit margin was also at its lowest at 11.99%. The company's efficiency has deteriorated, and the near term trend for operating profit is negative. The earnings per share (EPS) for the quarter were at its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

The company's short-term liquidity has also deteriorated, with cash and cash equivalents at its lowest in the last six half-yearly periods. The debtors turnover ratio, which measures the pace of settling debtors, was also at its lowest in the last five half-yearly periods.

Based on these financial results, MarketsMOJO has given a 'Sell' call for B A G Films & Media's stock. The company's performance in the quarter ending December 2023 has not been favorable, and the data suggests a negative trend in the near term. Investors should carefully consider these financials before making any investment decisions.