Hemang Resources' Q2 FY25 results show mixed performance, MarketsMOJO gives 'Strong Sell' call

Despite the mixed financial results, MarketsMOJO has given a ‘Strong Sell’ call for Hemang Resources’ stock. This could be due to the negative sales trend and deteriorating liquidity. However, the company has shown a significant growth in profit after tax, which could be a positive sign for investors.

Hemang Resources, a microcap trading company, has declared its financial results for the quarter ending September 2024. The company has reported a flat performance in Q2 FY24-25, with a score of -2 compared to 0 in the previous quarter.

According to the Sep 2024 financials, Hemang Resources has shown a positive trend in profit after tax, with a growth of 146.36% year on year. The company’s PAT for the nine month period is also higher than the previous 12 month period, indicating a strong performance.

However, the company’s net sales for the nine month period have shown a negative growth of -91.14% year on year, which could be a cause for concern. Additionally, the company’s cash and cash equivalents have decreased to Rs 0.09 cr in the last six half yearly periods, indicating a deteriorating short term liquidity.

Furthermore, the company’s debtors turnover ratio has also decreased to 0.47 times in the last five half yearly periods, suggesting a slower pace of settling its debtors.

Despite these mixed financial results, MarketsMOJO has given a ‘Strong Sell’ call for Hemang Resources’ stock. It is important for investors to carefully consider these factors before making any investment decisions.