Keerthi Industries' Q1 Financial Results Show Mixed Performance, Investors Advised to Analyze Carefully

Keerthi Industries, a microcap cement company, recently announced its financial results for the quarter ending March 2024. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO.

According to the financial report, Keerthi Industries has seen a negative performance in the quarter, with a score of -18, which has improved from -24 in the last three months. However, there are some positive aspects to the company's financials.

One of the strengths of Keerthi Industries is its high operating cash flow, which has been the highest in the last three years at Rs 15.51 crore. This indicates that the company has generated higher cash revenues from its business operations.

On the other hand, there are some areas of concern for the company. The net sales for the quarter have fallen by 29.3% compared to the average net sales of the previous four quarters. This shows a negative trend in the near term.

Similarly, the profit before tax (PBT) has also fallen by 45.1% compared to the average PBT of the previous four quarters. The profit after tax (PAT) has also shown a negative trend, with a growth of -29.59% year on year.

Another worrying factor is the company's debt-equity ratio, which has been increasing each half year in the last five periods. This indicates that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

In addition, the net sales for the quarter have been the lowest in the last five quarters, and the company's cash and cash equivalents have also decreased in the last six half-yearly periods. This shows a deteriorating short-term liquidity situation.

Furthermore, the company's pace of settling its debtors has slowed down, with the debtors turnover ratio being the lowest in the last five half-yearly periods.

Lastly, Keerthi Industries has been distributing lower dividends compared to previous years, with the dividend per share being the lowest in the last five years.

Overall, the financial results for the quarter ending March 2024 show a mix of positive and negative aspects for Keerthi Industries. Investors should carefully consider these factors before making any investment decisions.