Kallam Textiles Reports Negative Performance in Q1 2024, Receives 'Strong Sell' Call

Kallam Textiles, a microcap company in the textile industry, has recently announced its financial results for the quarter ending March 2024. The results, declared on May 30, 2024, have received a 'Strong Sell' call from MarketsMOJO.

According to the financial report, Kallam Textiles has seen a negative performance in the quarter, with a score of -12, which has improved from -14 in the last three months. This indicates that the company's financial health has deteriorated in the recent quarter.

One of the major factors contributing to this decline is the decrease in net sales, which have fallen by -44.68% year on year. This trend is expected to continue in the near term, as the company's sales have been consistently declining.

The company's profit before tax (PBT) has also taken a hit, with a decrease of -206.07% year on year. This is a significant decline and indicates a negative trend in the near term.

However, it is not all bad news for Kallam Textiles. The company's profit after tax (PAT) has shown a growth of -28.50% year on year, although the near term trend is still negative.

In terms of sales, the company has recorded its lowest net sales in the last five quarters, at Rs 61.94 crore. This is a concerning trend, as it shows a decline in the company's sales performance.

Another red flag in the financial report is the increase in interest costs, which have risen by 17.06% quarter on quarter. This signifies that the company has taken on more borrowings, which could have a negative impact on its financial health.

Overall, the financial results for the quarter ending March 2024 do not paint a positive picture for Kallam Textiles. Investors should take note of the 'Strong Sell' call by MarketsMOJO and carefully consider their investment decisions.