Lahoti Overseas sees decline in financial performance despite positive net sales trend

Despite a positive trend in net sales, Lahoti Overseas has seen a decline in its financial performance for the quarter ending September 2024. The company's score has fallen to -16 from 1 in the last 3 months, according to MarketsMOJO's latest report. As a result, the stock call for Lahoti Overseas is currently 'Strong Sell'.

However, there are some positive aspects to the company's financials. The net sales for the quarter were the highest in the last five quarters at Rs 157.23 crore, with a growth of 29.5% over the average net sales of the previous four quarters. This indicates a positive trend in the company's sales.

On the other hand, there are some concerning factors as well. The profit before tax (PBT) has fallen by -118.5% over the average PBT of the previous four quarters, and the profit after tax (PAT) has also seen a decline of -108.8%. Additionally, the company's operating cash flow has been the lowest in the last three years, indicating a decrease in cash revenues from business operations.

Another concerning aspect is the company's non-operating income, which is 128.57% of the PBT. This means that a significant portion of the company's income is coming from non-business activities, which may not be sustainable in the long run.

Furthermore, the debtors turnover ratio for the half-yearly period is the lowest in the last five periods, indicating a slowdown in the company's pace of settling its debtors.

In conclusion, while Lahoti Overseas has shown a positive trend in net sales, its overall financial performance for the quarter ending September 2024 has been negative. Investors should carefully consider these factors before making any investment decisions.