Nikhil Adhesives Reports Mixed Performance in Q1 2024 Financial Results

Nikhil Adhesives, a microcap company in the chemicals industry, has recently declared its financial results for the quarter ending March 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Nikhil Adhesives has shown a flat performance in the quarter, with a score of -1 which has improved from -9 in the last 3 months. However, there are some positive aspects to the company's financials. The operating profit (PBDIT) for the quarter is the highest in the last five quarters at Rs 8.89 crore, indicating a positive trend in the near term. The operating profit margin has also improved, reaching its highest at 6.01%. This shows that the company's efficiency has improved.

The profit after tax (PAT) for the quarter is also the highest in the last five quarters at Rs 3.76 crore, with a positive trend in the near term. The earnings per share (EPS) have also increased, reaching its highest at Rs 0.82. This indicates that the company has created higher earnings for its shareholders.

However, there are some areas of concern for Nikhil Adhesives. The operating profit to interest ratio is the lowest in the last five quarters at 4.25 times, showing a deterioration in the company's ability to manage interest payments. The interest cost has also increased by 18.08% (QoQ), reaching its highest at Rs 2.09 crore. This signifies increased borrowings by the company.

Overall, Nikhil Adhesives has shown a mixed performance in the quarter ending March 2024. While there are some positive aspects to the financials, there are also some areas of concern that need to be addressed by the company. Investors are advised to carefully consider these factors before making any investment decisions.