Gujarat Ambuja Exports' Q2 FY25 financials show negative trends, 'Sell' call from MarketsMOJO

Gujarat Ambuja Exports, a midcap company in the refined oil and vanaspati industry, recently declared its financial results for the quarter ending September 2024. According to MarketsMOJO, the stock call for the company is ‘Sell’.

The company has seen a negative financial performance in the second quarter of FY24-25, with a score of -8 compared to -5 in the previous quarter. However, there are some positive aspects to note from the Sep 2024 financials. The company’s operating profit margin for the quarter was the highest in the last five quarters, at 9.78%. This indicates an improvement in the company’s efficiency.

On the other hand, there are also some areas of concern for Gujarat Ambuja Exports. The profit after tax (PAT) for the quarter was at Rs 69.32 crore, which is a decrease of 21.2% compared to the average PAT of the previous four quarters. This shows a negative trend in the company’s near-term profitability. Additionally, the operating cash flow for the year has been consistently falling for the past three years, indicating a decline in the company’s cash revenues from business operations.

The net sales for the quarter were at Rs 1,124.64 crore, which is a decrease of 7.3% compared to the average net sales of the previous four quarters. This also shows a negative trend in the company’s near-term sales performance. The earnings per share (EPS) for the quarter were at its lowest in the last five quarters, at Rs 1.51. This indicates a decline in profitability and lower earnings for shareholders. Furthermore, the dividend payout ratio (DPR) for the year was at its lowest in the last five years, at 0.05%. This means that the company is distributing a lower proportion of its profits as dividends to shareholders.

Overall, the financial results for Gujarat Ambuja Exports for the quarter ending September 2024 have been negative, with a ‘Sell’ call from MarketsMOJO. The company’s efficiency has improved, but there are concerns regarding its profitability and cash flow. Investors should carefully consider these factors before making any investment decisions.