Jagran Prakashan's Q2 FY24-25 financials show mixed results, with areas of concern

Jagran Prakashan, a smallcap company in the printing and publishing industry, recently declared its financial results for the quarter ending September 2024. According to the report, the company's performance has remained flat in Q2 FY24-25, with a score of 0 compared to -2 in the previous quarter.

However, there are some positive aspects to the company's financials. The debt-equity ratio for the last five half-yearly periods has been the lowest at 0.11 times, indicating that the company has been reducing its borrowing in comparison to its equity capital. Additionally, the debtors turnover ratio for the last five half-yearly periods has been the highest at 4.23 times, showing that the company has been able to settle its debtors faster. The dividend payout ratio for the last five years has also been the highest at 59.23%, indicating that the company is distributing a higher proportion of its profits as dividends.

On the other hand, there are some areas of concern in Jagran Prakashan's financials. The profit before tax (PBT) less other income for the quarter has fallen by -8.48% year on year, standing at Rs 35.28 crore. This indicates a negative trend in the near term for PBT. Additionally, the company's non-operating income for the quarter is 43.41% of the PBT, which is a cause for concern as it shows a high income from non-business activities, which may not be sustainable. The non-operating income for the quarter is also the highest in the last five quarters at Rs 27.06 crore, which may not be a sustainable business model for the company.

In conclusion, while Jagran Prakashan has shown some positive aspects in its financials, there are also some areas of concern that investors should take note of. MarketsMOJO has given a 'Sell' call for the company's stock based on its financial performance in the quarter ending September 2024.