India Cements' Q2 Financial Results Show Mixed Performance, But Stock Call Remains 'Strong Sell' According to MarketsMOJO

India Cements, a midcap company in the cement industry, recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, a leading stock analysis platform, the stock call for India Cements is 'Strong Sell'.

The company has seen a very negative financial performance in the quarter, with a score of -21 compared to 1 in the previous quarter. However, there are some positive aspects to the financials as well. The company's earnings per share (EPS) for the quarter were the highest in the last five quarters at Rs 1.89, indicating an increase in profitability and higher earnings for shareholders. The debt-equity ratio for the half-yearly period was also the lowest in the last five periods, showing a reduction in borrowing compared to equity capital. Additionally, the debtors turnover ratio for the half-yearly period was the highest in the last five periods, indicating that the company has been able to settle its debtors faster.

On the other hand, there are some concerning aspects in the financials. The profit before tax less other income (PBT) for the quarter has fallen by 76.6% compared to the average PBT of the previous four quarters. The profit after tax (PAT) for the quarter has also fallen by 88.1% compared to the average PAT of the previous four quarters. The net sales for the quarter have also fallen by 19.7% compared to the average net sales of the previous four quarters. The interest cost for the quarter has increased by 27.31% compared to the previous quarter, indicating increased borrowings. The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters.

Overall, the near-term financial trend for India Cements is negative, with a decline in PBT, PAT, net sales, and operating profit. The company's efficiency has also deteriorated, with the operating profit margin being the lowest in the last five quarters. The rising interest cost also signifies increased borrowings. Investors should carefully consider these factors before making any investment decisions.