Dhanalaxmi Roto Spinners Reports Mixed Financial Performance in Q1 2024

Dhanalaxmi Roto Spinners, a microcap textile company, recently announced its financial results for the quarter ending March 2024. The stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, the company has seen a negative performance in the quarter, with a score of -12 compared to 7 in the previous quarter. However, there are some positive aspects to the company's financials. Dhanalaxmi Roto has shown a strong operating cash flow of Rs 23.10 crore annually, with a consistent growth over the past three years.

On the other hand, there are some concerning factors as well. The net sales for the quarter have fallen by 39.6% to Rs 29.68 crore, which is significantly lower than the average net sales of the previous four quarters. The company's profit before tax (PBT) has also seen a sharp decline of 106.4% to Rs -0.11 crore, compared to the average PBT of Rs 1.72 crore in the previous four quarters. Similarly, the profit after tax (PAT) has also fallen by 65.7% to Rs 1.04 crore, indicating a negative trend in the near term.

Moreover, the company's operating profit (PBDIT) and operating profit margin have hit a five-quarter low, with a negative trend. The non-operating income is also high, accounting for 108.33% of the PBT, which is not a sustainable business model. Additionally, the earnings per share (EPS) have also declined to Rs 3.59, creating lower earnings for shareholders.

Overall, Dhanalaxmi Roto Spinners has shown a mixed financial performance in the quarter ending March 2024. While there are some positive aspects, the company needs to address the concerning factors to improve its financial standing in the market.