Bombay Cycle & Motor Agency Shows Positive Performance in Q1 2024, But Debt to Equity Ratio Remains High

Debt to Equity Ratio - Annually: Highest at 0.03 in the last five years.Company has higher debt in proportion to equity, which may increase financial risk.

Bombay Cycle & Motor Agency, a microcap trading company, has recently announced its financial results for the quarter ending June 2024. The company has shown positive performance with a score of 7, a significant improvement from the previous quarter's score of 1.

One of the key factors contributing to this positive performance is the company's operating cash flow, which has been consistently growing over the last three years and is currently at its highest at Rs 4.60 crore. This indicates that the company has been able to generate higher cash revenues from its business operations.

In terms of profitability, Bombay Cycle has also shown promising results. The company's Profit Before Tax less Other Income (PBT) for the quarter is at its highest in the last five quarters, at Rs 0.53 crore. The trend for near-term PBT is also positive. Similarly, the company's Profit After Tax (PAT) for the quarter is at its highest in the last five quarters, at Rs 0.95 crore, with a positive trend in the near term. This indicates that the company has been able to increase its profitability and create higher earnings for its shareholders.

However, there are some areas that need improvement for Bombay Cycle. The company's Dividend Payout Ratio (DPR) for the last five years is at its lowest at 5.87%, indicating that the company is distributing a lower proportion of its profits as dividends. Additionally, the Debt to Equity Ratio for the last five years is at its highest at 0.03, indicating that the company has a higher proportion of debt in comparison to equity, which may increase its financial risk.

Overall, Bombay Cycle & Motor Agency has shown positive financial performance in the quarter ending June 2024. However, investors are advised to hold their stock, as recommended by MarketsMOJO, and keep an eye on the company's progress in improving its dividend payout ratio and reducing its debt to equity ratio.