Nath Industries' Q1 2024 Results Show Mixed Performance, Highest Debt to Equity Ratio in 5 Quarters

Debt to Equity Ratio - Total Liabilities/Shareholders Equity: Highest at 1.03 in the last five quarters.Higher debt indicates higher financial risk for the company.

Nath Industries, a microcap company in the paper and paper products industry, recently announced its financial results for the quarter ending March 2024. The results, declared on August 9, 2024, have received a 'Sell' call from MarketsMOJO.

Despite a flat performance in the quarter, Nath Industries has shown improvement in its overall score, moving from -9 to -1 in the last three months. The company's net sales for the quarter were the highest in the last five quarters, standing at Rs 87.61 crore. This indicates a positive trend in near-term sales.

The operating profit (PBDIT) for the quarter was also the highest in the last five quarters, at Rs 5.10 crore. This shows a positive trend in the company's near-term operating profit. The operating profit margin has also improved, reaching its highest at 5.82% in the last five quarters, indicating increased efficiency.

Nath Industries has also shown improvement in its profit after tax (PAT), with the highest figure of Rs 0.37 crore in the last five quarters. The earnings per share (EPS) for the quarter were also the highest in the last five quarters, at Rs 0.19. This signifies increasing profitability and higher earnings for shareholders.

However, there are some areas of concern for Nath Industries based on its Jun 2024 financials. The interest cost for the half-yearly period has grown by 28.07% compared to the previous period, standing at Rs 6.16 crore. This rise in interest cost indicates increased borrowings for the company. Additionally, the debt to equity ratio, which measures the company's financial risk, is at its highest in the last five quarters, standing at 1.03.

Overall, Nath Industries has shown a mixed performance in the quarter ending March 2024. While there are some positive trends in terms of sales and profitability, the company's increasing debt and interest cost are areas of concern. Investors should carefully consider these factors before making any investment decisions.