Kamat Hotels (India) Sees Negative Financial Performance, MarketsMOJO Issues 'Sell' Call

Kamat Hotels (India) has recently declared its financial results for the quarter ending March 2024. According to the data released on May 7, 2024, the company has seen a very negative performance in terms of its financials. This has led to MarketsMOJO giving a 'Sell' call for the stock.

One of the major factors contributing to this decline is the rising interest cost. In the last nine months, the interest cost has grown by 257.32%, indicating increased borrowings by the company. This can have a negative impact on its financial health.

Moreover, the company's Profit Before Tax (PBT) has fallen by 89.87% year on year, and the Profit After Tax (PAT) has also seen a decline of 95.1% year on year. This shows a very negative trend in the near term for the company.

Another concerning factor is the company's Operating Profit Margin, which is at its lowest in the last five quarters. This indicates a deterioration in the company's efficiency. Additionally, the Non-Operating Income for the quarter is 55.72% of the PBT, which is a high percentage. This suggests that the company's income from non-business activities is not a sustainable business model.

Furthermore, the Non-Operating Income for the quarter is at its highest in the last five quarters, at Rs 4.58 crore. This increase in income from non-business activities may not be sustainable for the company.

Overall, based on the financial results for the quarter ending March 2024, Kamat Hotels (India) has seen a decline in its financial performance. This has led to a 'Sell' call for the stock by MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.