Gujarat Apollo Industries Reports Negative Performance in Q1, Investors Advised to Exercise Caution

Gujarat Apollo Industries, a microcap company in the capital goods industry, recently announced its financial results for the quarter ending June 2024. The stock call by MarketsMOJO for the company is 'Sell'.

According to the financial report, the company has seen a negative performance in the quarter, with a score of -9 compared to 5 in the previous quarter. This decline can be attributed to various factors, as highlighted by the financial data.

One of the major concerns for Guj Apollo Inds is the decrease in net sales, which have fallen by -28.88% year on year. This trend is expected to continue in the near term, as the company's sales have been consistently declining. Similarly, the profit after tax (PAT) has also seen a significant decrease of -170.1% year on year, indicating a negative trend in the company's profitability.

Moreover, the company's non-operating income is 563.29% of the profit before tax (PBT), which suggests that a large portion of the company's income is coming from non-business activities. This is not a sustainable business model and raises concerns about the company's long-term financial stability.

The earnings per share (EPS) for the quarter have also declined, reaching its lowest at Rs -1.53 in the last five quarters. This indicates a declining profitability and lower earnings for shareholders.

In addition, the company's cash and cash equivalents have also decreased, reaching its lowest at Rs 2.93 cr in the last six half-yearly periods. This suggests that the company's short-term liquidity is deteriorating.

Based on the financial data, it is evident that Gujarat Apollo Industries is facing challenges in terms of sales, profitability, and liquidity. Investors are advised to carefully consider these factors before making any investment decisions.