Exxaro Tiles' Financial Report Shows Negative Performance and 'Strong Sell' Rating

Exxaro Tiles, a microcap company in the ceramics/marble/granite/sanitaryware industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO.

According to the financial report, Exxaro Tiles has seen a negative performance in the second quarter of the fiscal year 2024-2025. However, there has been a slight improvement in the company's score, which has gone from -22 to -10 in the last three months.

One of the major concerns for Exxaro Tiles is its operating cash flow, which has been consistently falling over the past three years. In the last financial year, the company's cash revenues from business operations were at their lowest at Rs 5.27 crore. Additionally, the profit after tax (PAT) for the quarter has also seen a decline of 17.2% compared to the average PAT of the previous four quarters.

Another red flag for the company is its inventory turnover ratio, which has been decreasing each half-yearly period for the past five years. This indicates a slowdown in the pace of selling inventory. Furthermore, the company's short-term liquidity is also deteriorating, with its cash and cash equivalents at their lowest in the last six half-yearly periods.

Overall, the financial results for the quarter ending September 2024 do not paint a positive picture for Exxaro Tiles. With a 'Strong Sell' rating from MarketsMOJO, it is clear that the company is facing some challenges in its operations. Investors should carefully consider these factors before making any decisions regarding Exxaro Tiles' stock.