Mangalam Seeds Reports Positive Financial Results for Q1 FY25, Debtors Turnover Ratio at 5-Year High

Mangalam Seeds, a microcap company in the agri-seeds industry, has recently announced its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, Mangalam Seeds has shown a flat performance in the quarter, but there has been an improvement in its overall score from -12 to 1 in the last three months. The company’s net sales for the quarter were Rs 32.21 crore, showing a growth of 38.96% compared to the same period last year. This indicates a positive trend in the company’s sales in the near term. Similarly, the profit after tax (PAT) for the quarter was Rs 3.84 crore, showing a growth of 35.7% compared to the previous year. This also reflects a positive trend in the company’s profitability in the near term.

One of the key factors contributing to Mangalam Seeds’ success is its debtors turnover ratio, which is at its highest in the last five half-yearly periods at 6.29 times. This means that the company has been able to settle its debtors faster, which is a positive sign for its financial health.

However, there are also some areas of concern for Mangalam Seeds. The company’s interest cost has increased by 56.12% in the last half-yearly period, indicating a rise in borrowings. Additionally, the debt-equity ratio is at its highest in the last five half-yearly periods at 0.82 times, which suggests that the company is relying more on borrowing to fund its operations. This could potentially lead to a strained liquidity situation for the company.

Overall, Mangalam Seeds has shown a positive trend in its financial performance in the near term, with a significant increase in net sales and PAT. However, investors should also keep an eye on the company’s increasing interest cost and debt-equity ratio.