Mindteck (India) Reports Positive Q1 FY25 Results, But Concerns Over Interest Coverage and Debt Ratio Remain

Aug 08 2024 05:50 PM IST
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Mindteck (India) has shown positive financial performance in Q2 2024 with increased operating cash flow, net sales, operating profit, and profit after tax. However, the company's low interest coverage ratio and high debt to equity ratio may pose challenges in meeting interest obligations and raising funds for future growth. MarketsMojo has a 'Hold' call for the stock, suggesting a neutral stance. Investors should monitor the company's financials and growth strategies before investing.

Interest Coverage Ratio – Quarterly: Lowest at 1.22 times in the last five quarters.Company may face difficulty in meeting its interest obligations.

Debt to Equity Ratio – Half Yearly: Highest at 0.03 times in the last six half yearly periods.Company has a low debt to equity ratio, but it may limit its ability to raise funds for future growth.


Overall, Mindteck (India) has shown a positive financial performance in the quarter ending Jun 2024. The company has seen an increase in operating cash flow, net sales, operating profit, and profit after tax. However, there are some areas of concern such as increased non-operating income and a low interest coverage ratio. MarketsMOJO has given a ‘Hold’ call for the stock, indicating a neutral stance. Investors should keep an eye on the company’s financials and future growth strategies before making any investment decisions.


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