CHL's Q4 Financial Results Show Mixed Performance, MarketsMOJO Issues 'Sell' Call

CHL, a microcap hotel company, has recently announced its financial results for the quarter ending December 2023. According to the report, the company has seen a flat performance in the quarter, with a score of 1 compared to -11 in the previous quarter.

Despite this, there are some positive aspects to CHL's financials. The company has shown a strong inventory turnover ratio, with a record high of 12.16 times in the last five half-yearly periods. This indicates that CHL has been able to sell its inventory at a faster rate. Additionally, the net sales for the quarter were at Rs 34.84 crore, the highest in the last five quarters, showing a positive trend in sales. The operating profit for the quarter was also at its highest, at Rs 11.26 crore, indicating a positive trend in the company's efficiency.

However, there are some areas of concern for CHL. The interest cost for the half-yearly period has increased by 22.29%, which could signify increased borrowings by the company. The non-operating income for the quarter was also high, at 93.68% of the profit before tax, which could indicate that the company's income from non-business activities is not sustainable. The debt-equity ratio for the half-yearly period was also at its highest in the last five periods, indicating that the company may be relying heavily on borrowing to fund its operations.

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