Kewal Kiran Clothing Reports Positive Q2 FY25 Results, Receives 'Hold' Call from MarketsMOJO

Kewal Kiran Clothing, a smallcap textile company, has recently announced its financial results for the quarter ending September 2024. The company has received a ‘Hold’ call from MarketsMOJO, a leading financial analysis platform.

According to the financial report, Kewal Kiran Clothing has shown positive performance in the quarter, with a score of 9, which is a significant improvement from the previous quarter’s score of -8. This improvement can be attributed to various factors, including the company’s strong operating cash flow, which has been consistently growing over the past three years. Additionally, the company has also shown a high inventory turnover ratio, indicating that it is able to sell its products at a faster rate.

In terms of sales, Kewal Kiran Clothing has recorded its highest net sales of Rs 308.23 crore in the last five quarters, showing a positive trend in the near term. The company has also shown a positive trend in its operating profit and profit after tax, with the latter growing at a rate of 32.0% year on year. This has resulted in a higher earnings per share for shareholders.

On the other hand, there are some areas that need improvement for Kewal Kiran Clothing. The profit before tax has fallen by -10.20% year on year, and the company’s non-operating income is 39.73% of its profit before tax. This indicates that the company’s income from non-business activities is high, which may not be a sustainable business model in the long run. Additionally, the company’s dividend payout ratio is at its lowest in the last five years, indicating that it is distributing a lower proportion of its profits as dividends.

Overall, Kewal Kiran Clothing has shown positive financial performance in the quarter ending September 2024, with some areas that need improvement. Investors are advised to hold their stocks for now, as recommended by MarketsMOJO.