Indo Borax & Chemicals Reports Mixed Financial Results for Q2 FY24-25

Indo Borax & Chemicals, a microcap company in the chemicals industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for Indo Borax & Chemicals is 'Sell'.

According to the financial report, the company's performance for Q2 FY24-25 has been flat, with a score of -2 compared to 12 in the previous 3 months. However, there are some positive aspects to the company's financials.

One of the strengths of Indo Borax & Chemicals is its strong operating cash flow, which has been consistently growing over the past three years. In the last financial year, the company generated a cash flow of Rs 67.87 crore, the highest in its history. Additionally, the company's inventory turnover ratio has also been consistently increasing, indicating that it has been able to sell its inventory at a faster rate.

On the other hand, there are some areas of concern for Indo Borax & Chemicals. The company's net sales for the quarter have fallen by 18.6% compared to the average of the previous four quarters. This negative trend in sales is a cause for worry in the near term. Similarly, the company's profit after tax (PAT) has also decreased by 13.8% compared to the average of the previous four quarters. This trend is also a cause for concern.

Moreover, the company's net sales and operating profit for the quarter are at their lowest in the last five quarters, indicating a negative trend in the near term. Additionally, the company's non-operating income, which is 33.51% of its profit before tax, is a cause for concern as it is not a sustainable business model. Furthermore, the company's non-operating income has increased significantly in the last five quarters, which may not be sustainable.

In conclusion, while Indo Borax & Chemicals has some positive aspects to its financials, there are also some areas of concern that investors should keep in mind. The company's stock call by MarketsMOJO is 'Sell', and it will be interesting to see how the company performs in the coming quarters.