Everest Organics Reports Negative Performance in Q1 FY25, Experts Recommend Caution

Everest Organics, a microcap pharmaceutical company, has recently announced its financial results for the quarter ending June 2024. The company has reported a negative performance with a score of -11, a significant decrease from the previous quarter’s score of -1.

One of the major factors contributing to this decline is the decrease in net sales, which fell by 34.2% to Rs 32.45 crore compared to the average net sales of the previous four quarters, which was Rs 49.31 crore. This indicates a negative trend in the company’s sales in the near term.

Another concerning aspect is the company’s ability to manage interest payments, as seen in the lowest operating profit to interest ratio of -2.83 in the last five quarters. This suggests that the company’s financial health may be deteriorating.

Moreover, the company’s operating profit, operating profit margin, and profit before tax have also seen a decline in the last five quarters, indicating a negative trend in the near term. This has resulted in a decrease in earnings per share, which is at its lowest at Rs -7.61 in the last five quarters.

Additionally, Everest Organics’ debt-equity ratio has reached its highest at 1.22 times in the last five half-yearly periods, indicating that the company is relying more on borrowing to fund its operations. This could potentially lead to a stressed liquidity situation for the company.

Based on these financial results, MarketsMOJO has given a ‘Sell’ call for Everest Organics’ stock. Investors should carefully consider these factors before making any investment decisions.