Cantabil Retail India Reports Negative Financial Performance in Q2 FY24-25

Cantabil Retail India, a smallcap textile company, recently declared its financial results for the quarter ending September 2024. According to the report, the company has seen a negative financial performance in Q2 FY24-25, with a score of -11 compared to -2 in the last three months.

One of the major concerns for Cantabil Retail is its operating profit to interest ratio, which has reached its lowest point in the last five quarters at 4.08 times. This indicates a deteriorating ability to manage interest payments. Additionally, the company's profit before tax less other income (PBT) has fallen by -19.46% year on year, and the profit after tax (PAT) has also seen a decline of -12.7% year on year. The trend for both PBT and PAT is expected to remain negative in the near term.

Furthermore, Cantabil Retail's earnings per share (EPS) for the quarter have reached its lowest point in the last five quarters at Rs 0.78. This indicates a declining profitability and lower earnings for shareholders. The company's debtors turnover ratio for the half-yearly period has also reached its lowest point in the last five periods at 38.76 times, indicating a slower pace in settling its debtors.

Based on these financial results, MarketsMOJO has given a 'Strong Sell' call for Cantabil Retail's stock. Investors should carefully consider these factors before making any investment decisions.