KM Sugar Mills' Financial Performance Shows Negative Trend, MarketsMOJO Rates as 'Sell'

KM Sugar Mills, a microcap company in the sugar industry, recently announced its financial results for the quarter ending June 2024. The stock call by MarketsMOJO for the company is 'Sell'.

According to the financials, KM Sugar Mills has seen a negative performance in the quarter, with a score of -19 compared to 3 in the previous quarter. This decline can be attributed to various factors.

One of the major concerns is the decrease in net sales, which have fallen by -32.52% year on year. This trend is expected to continue in the near term. Similarly, the profit before tax (PBT) has also decreased by -48.43% year on year, indicating a negative trend in the near future.

The company's profit after tax (PAT) for the nine-month period has also seen a decline of -43.03% year on year. This is a cause for concern as it shows a negative trend in the near term.

Another worrying factor is the company's operating profit to interest ratio, which is at its lowest in the last five quarters. This indicates a deteriorating ability to manage interest payments. The interest cost has also increased by 14.92% quarter on quarter, which signifies increased borrowings.

In addition, KM Sugar Mills has distributed a lower dividend per share (DPS) of Rs 0.00 compared to the previous years. The dividend payout ratio (DPR) is also at its lowest in the last five years, indicating a lower proportion of profits being distributed as dividends.

Based on these financials, it is evident that KM Sugar Mills is facing challenges in its operations. Investors are advised to take note of these factors before making any investment decisions.