Goodricke Group's Q1 FY25 financial results show mixed trends, with potential for improvement

Aug 08 2024 09:32 PM IST
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Goodricke Group, a microcap company in the tea/coffee industry, has shown improvement in its overall score despite a flat financial performance in the quarter ending June 2024. Positive trends include significant growth in PBT and PAT, as well as a 23.20% increase in net sales. However, areas of concern include declining operating cash flow, increased interest costs, and consistently low dividend payouts. Investors should carefully consider these factors before making any decisions.

Goodricke Group, a microcap company in the tea/coffee industry, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

Despite a flat financial performance in the quarter, Goodricke Group has shown improvement in its overall score, which has increased from -17 to -1 in the last three months. This can be attributed to the following factors:


– Profit Before Tax (PBT) has shown a significant growth of 141.5% compared to the average PBT of the previous four quarters. This is a positive trend for the company in the near term.

– Profit After Tax (PAT) has also shown a growth of 172.1% compared to the average PAT of the previous four quarters. This is another positive trend for the company in the near term.

– Net Sales for the half-yearly period have shown a growth of 23.20% year on year, indicating a positive trend in the near term.


However, there are some areas where Goodricke Group needs to improve, as seen in its financial results for the quarter ending June 2024:


– Operating Cash Flow has been consistently falling in the last three years, with the lowest at Rs -24.97 Cr. This indicates a decline in the company’s cash revenues from business operations.

– Interest costs have increased by 24.22% compared to the previous quarter, which signifies increased borrowings for the company.

– The company’s dividend per share (DPS) has been consistently low in the last five years, with no dividend being distributed in the last year. This is lower than the previous years.

– The dividend payout ratio (DPR) has also been consistently low in the last five years, indicating that the company is distributing a lower proportion of its profits as dividends.


Overall, Goodricke Group’s financial results for the quarter ending June 2024 show a mix of positive and negative trends. Investors should carefully consider these factors before making any investment decisions.


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