Nitta Gelatin India's Q1 FY25 Financial Report Shows Mixed Performance

Nitta Gelatin India, a microcap company in the chemicals industry, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Nitta Gelatin has seen a negative performance in the quarter, with a score of -6, which has improved from -9 in the last three months. However, there are some positive aspects to the company’s financials.

One of the strengths of Nitta Gelatin is its cash and cash equivalents, which have been the highest in the last six half-yearly periods at Rs 75.69 crore. This shows that the company’s short-term liquidity is improving.

On the other hand, there are some areas of concern for Nitta Gelatin. The company’s Profit After Tax (PAT) for the half-yearly period has grown at a negative rate of -23.11% year on year, indicating a negative trend in the near term. Additionally, the Dividend Payout Ratio (DPR) for the last five years has been the lowest at 6.59% and has been falling each year. This suggests that the company is distributing a lower proportion of its profits as dividends.

Furthermore, the Profit Before Tax less Other Income (PBT) for the quarter has fallen at a rate of -7.4% compared to the average PBT of the previous four quarters. This indicates a negative trend in the near term for PBT.

Overall, Nitta Gelatin’s financial performance for the quarter ending June 2024 has been mixed, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.