Manaksia's Q3 Financial Results Show Significant Decline, 'Strong Sell' Stock Call

Manaksia, a microcap company in the aluminium and aluminium products industry, recently declared its financial results for the quarter ending September 2024. According to the data released on November 13, 2024, the company has seen a very negative performance in this quarter, with a score of -27, a significant decrease from -24 in the last three months.

The financials for the quarter show a decline in key areas such as Profit Before Tax (PBT), Profit After Tax (PAT), and Operating Profit. PBT has fallen by 71.6% to Rs 4.23 crore, while PAT has decreased by 40.5% to Rs 14.36 crore. The company's interest costs have also risen by 44% quarter on quarter, indicating increased borrowings. Additionally, the company's ability to manage interest payments has deteriorated, with the Operating Profit to Interest ratio at its lowest in the last five quarters.

The half-yearly data also shows a negative trend, with a decline in Net Sales by 36.81% year on year and a decrease in Operating Profit Margin to its lowest at 5.19%. The company's efficiency has also deteriorated, with the Operating Profit trend showing a negative trend in the near term.

Furthermore, the company's non-operating income is 79.54% of its PBT, indicating a high income from non-business activities, which may not be a sustainable business model. The company's short-term liquidity has also deteriorated, with Cash and Cash Equivalents at its lowest in the last six half-yearly periods. The Debtors Turnover Ratio, which measures the pace of settling debtors, is also at its lowest in the last five half-yearly periods.

In the last five years, the company has distributed a lower proportion of its profits as dividends, with a Dividend Payout Ratio of 0.00%. Overall, Manaksia's financial performance for the quarter ending September 2024 has been deemed as very negative, with a 'Strong Sell' stock call by MarketsMOJO.