Master Trust Reports Strong Q2 Results, But Declining EPS Raises Concerns

Master Trust, a smallcap finance company, has recently announced its financial results for the quarter ended September 2024. The company has shown positive performance in the second quarter of the fiscal year 2024-25, with a score of 19 out of 20. This is a slight decrease from the previous quarter's score of 20.

According to the financials, Master Trust has seen a significant growth in its net sales, which have increased by 47.65% year on year, reaching Rs 314.03 crore. The company's profit after tax has also shown a strong growth of 68.45% year on year, reaching Rs 71.54 crore. This indicates a positive trend in the company's sales and profitability in the near term.

In terms of cash flow, Master Trust has generated the highest operating cash flow of Rs 457.87 crore annually in the last three years. The company also has a strong cash position, with cash and cash equivalents of Rs 1,540.36 crore in the last six half yearly periods. This shows an improvement in the company's short-term liquidity.

On the other hand, the company's earnings per share (EPS) have declined in the last five quarters, with the lowest being Rs 3.27 in the September 2024 quarter. This indicates a decrease in profitability and lower earnings for shareholders.

MarketsMOJO has given a 'Hold' call for Master Trust's stock, suggesting a neutral stance for investors. With a low debt-equity ratio of 0.33 times in the last five half yearly periods, the company has been reducing its borrowing and maintaining a strong financial position.

Overall, Master Trust has shown positive financial performance in the second quarter of FY24-25, with strong growth in net sales and profit after tax. However, the declining EPS may be a cause for concern for investors.