Mukta Arts Reports Strong Financial Growth

Mukta Arts, a microcap company in the films and entertainment industry, has recently declared its financial results for the quarter ended September 2023. According to the analysis by MarketsMOJO, the stock call for Mukta Arts is 'Sell'.

In the quarter ended September 2023, Mukta Arts saw a significant growth in its net sales, with a 51.13% increase compared to the previous quarter. The company also reported a consolidated net profit growth of 213.68% and a 463.55% growth in operating profit (PBDIT) excluding other income. Additionally, the company's interest expenses saw a decrease of 1.96% in the quarter.

The operating profit margin (excluding other income) has also improved compared to the previous quarter. This positive financial performance has resulted in a score improvement for Mukta Arts, from -7 to 19 in the last 3 months.

Some of the key factors contributing to this growth include a significant increase in profit before tax (PBT) and profit after tax (PAT), as well as a strong net sales growth. The company's ability to manage interest payments has also improved, with the operating profit to interest ratio being the highest in the last five quarters.

On the other hand, the company's non-operating income is relatively high, accounting for 40.39% of the profit before tax. This may not be a sustainable business model in the long run. Additionally, the company's short-term liquidity has deteriorated, with cash and cash equivalents being at its lowest in the last six half-yearly periods.

Overall, Mukta Arts has shown positive financial performance in the quarter ended September 2023, with a strong growth in key areas. However, investors should also consider the potential risks associated with the company's high non-operating income and decreasing short-term liquidity.