HB Estate Developers Reports Positive Financial Results for Q4 2023, Stock Receives 'Hold' Rating

HB Estate Developers, a microcap company in the hotel industry, has recently announced its financial results for the quarter ending December 2023. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, HB Estate Developers has shown positive performance in the quarter, with a score of 15 compared to 6 in the previous quarter. This improvement can be attributed to several factors.

One of the key factors is the company's Profit Before Tax less Other Income (PBT) which has grown by 578.5% to Rs 2.68 crore in the quarter, compared to the average PBT of the previous four quarters which was Rs 0.40 crore. This indicates a very positive trend in the near term.

Similarly, the Profit After Tax (PAT) has also shown significant growth of 152.8% to Rs 1.51 crore in the quarter, compared to the average PAT of the previous four quarters which was -Rs 2.86 crore. This is another positive trend for the company.

HB Estate Developers has also been able to sell its inventory faster, with an Inventory Turnover Ratio of 6.99 times in the last five half-yearly periods. This is the highest ratio in the last five periods, indicating efficient management of inventory.

The company's net sales in the quarter were also the highest in the last five quarters at Rs 29.73 crore, showing a positive trend in the near term. Similarly, the Operating Profit (PBDIT) was also the highest at Rs 11.67 crore in the last five quarters, indicating a positive trend in the near term.

The Operating Profit Margin was also the highest at 39.25% in the last five quarters, showing improved efficiency for the company. The PBT was also the highest at Rs 2.68 crore in the last five quarters, indicating a positive trend in the near term.

However, one area of concern for HB Estate Developers is the rising interest cost, which has increased by 13.04% (QoQ) to Rs 7.11 crore in the last five quarters. This signifies increased borrowings for the company.

Overall, the financial results for the quarter ending December 2023 show positive performance for HB Estate Developers, with several key factors contributing to its growth. Investors are advised to hold their stock in the company, as recommended by MarketsMOJO.