Kirloskar Electric Company Reports Mixed Financial Results for Q1 FY25

Kirloskar Electric Company, a smallcap player in the capital goods industry, recently announced its financial results for the quarter ending March 2024. According to MarketsMOJO, a leading stock analysis platform, the stock call for Kirloskar Electric is ‘Sell’.

The company has reported a negative financial performance for the quarter, with a score of -10 compared to -8 in the previous quarter. However, there are some positive aspects to the company’s financials based on the June 2024 results.

One of the key strengths of Kirloskar Electric is its inventory turnover ratio, which has been consistently growing in the last five half-yearly periods and is currently at a high of 11.56 times. This indicates that the company has been able to sell its inventory at a faster pace.

On the other hand, the company’s profit after tax (PAT) for the quarter has fallen by 45.2% compared to the average PAT of the previous four quarters. This is a cause for concern as it shows a negative trend in the near term. Additionally, the debtors turnover ratio for the half-yearly period is at its lowest in the last five periods, indicating a slowdown in the company’s pace of settling its debtors.

Overall, while Kirloskar Electric Company has shown some positive aspects in its financials, the negative trends in PAT and debtors turnover ratio cannot be ignored. Investors are advised to carefully consider these factors before making any investment decisions.