Global Capital Markets Reports Positive Q2 Results, But Cash Flow and Debt Raise Concerns

Net Cash Flow - Annually: Lowest at Rs -2.32 Cr in the last three years.The company's cash revenues from business operations are falling.
Debt to Equity Ratio - Quarterly: Highest at 1.2 in the last five quarters.The company's debt to equity ratio has increased, indicating higher financial risk.

Global Capital Markets, a microcap finance company, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financials, Global Capital Markets has shown a positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 7 to 12 in the last three months.

The company's operating profit (PBDIT) for the quarter was the highest in the last five quarters at Rs 1.16 crore. The near-term trend for operating profit is positive. Similarly, the profit before tax less other income (PBT) and profit after tax (PAT) were also the highest in the last five quarters, at Rs 1.14 crore and Rs 0.98 crore respectively. The near-term trends for both PBT and PAT are positive.

However, the company's operating cash flow and net cash flow have been declining, with the lowest figures in the last three years at Rs -2.32 crore. This indicates a decrease in cash revenues from business operations. Additionally, the debt to equity ratio has increased to 1.2 in the last five quarters, suggesting a higher financial risk for the company.

Despite these challenges, Global Capital Markets has shown a positive financial performance in the recent quarter. Investors should keep an eye on the company's future financial reports to track its progress.