Loyal Textile Mills Reports Negative Financial Performance

This may indicate a cash crunch or inefficiency in collections.
Loyal Textile Mills, a microcap company in the textile industry, recently declared its financial results for the quarter ended September 2023. The company's net sales for the quarter saw a decline of 13.64% compared to the previous quarter, while its standalone net profit showed a growth of 6.87%.

However, according to MarketsMOJO, a leading financial analysis platform, the stock call for Loyal Textile is currently a "Strong Sell". This is based on the company's financial performance in the quarter, which has been deemed as very negative.

The company's operating profit (PBDIT) excluding other income also showed a significant improvement of 72.48% compared to the previous quarter. However, the interest cost for the quarter increased by 23.06%, indicating a rise in borrowings.

Loyal Textile's financial score has fallen from -26 to -28 in the last three months, indicating a decline in its overall financial performance. The company's net sales and profit after tax (PAT) have also shown a negative trend in the near term.

The company's debt-equity ratio is at its highest in the last five half-yearly periods, indicating a higher reliance on borrowings. Additionally, the company's debtors turnover ratio has also slowed down, which could be a sign of cash crunch or inefficiency in collections.

Overall, Loyal Textile Mills has reported a negative financial performance for the quarter ended September 2023. Investors should carefully consider these factors before making any investment decisions.