GEE's Financial Results Show Mixed Performance, MarketsMOJO Gives 'Sell' Call

Electrodes & Welding company GEE has recently announced its financial results for the quarter ending June 2024. According to the report, the company's performance has remained flat compared to the previous quarter, with a score of 0 out of 4.

However, there are some positive aspects to GEE's financials. The company has shown a decreasing trend in its debt-to-equity ratio, with the current ratio being the lowest in the last five half-yearly periods. This indicates that GEE has been reducing its borrowing and relying more on equity capital. Additionally, the company has been able to settle its debtors at a faster rate, with the highest debtors turnover ratio in the last five half-yearly periods.

On the other hand, there are some concerning factors in GEE's financials. The profit before tax (PBT) has fallen by 49.6% compared to the average PBT of the previous four quarters. This trend is expected to continue in the near term. Similarly, the profit after tax (PAT) has also decreased by 65.1% compared to the average PAT of the previous four quarters. The company's interest cost has also increased, indicating a rise in borrowings. Moreover, GEE's short-term liquidity has deteriorated, with the lowest cash and cash equivalents in the last six half-yearly periods.

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