Chembond Chemicals Reports Mixed Performance in Q1 FY25 Financial Results

Chembond Chemicals, a microcap company in the chemicals industry, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, Chembond Chemicals has seen a negative performance in the quarter, with a score of -6 compared to -2 in the previous quarter. However, there are some positive aspects to the company’s financials. The operating cash flow has been consistently growing over the past three years, with the highest amount of Rs 27.65 crore generated annually. The company also has a strong cash position, with Rs 40.23 crore in cash and cash equivalents in the last six half-yearly periods.

On the other hand, there are some areas of concern for Chembond Chemicals. The profit after tax (PAT) for the quarter has fallen by 28.2% compared to the average of the previous four quarters. The net sales for the quarter are also at its lowest in the last five quarters, with a negative trend. The profit before tax (PBT) and non-operating income have also seen a decline, indicating a negative trend in the near term.

Additionally, the company’s dividend payout ratio has been consistently low in the last five years, indicating a lower distribution of profits as dividends. The company’s reliance on non-business activities for income is also a cause for concern.

Overall, Chembond Chemicals has shown a mixed performance in the quarter ending June 2024. While there are some positive aspects to the financials, there are also areas of concern that need to be addressed. Investors are advised to hold their position in the company’s stock and monitor its performance closely.