Orient Beverages shows positive growth in financials, but some areas need improvement

Orient Beverages, a microcap FMCG company, has recently declared its financial results for the quarter ended March 2024. The company has shown a positive performance with a score of 14, which is an improvement from the previous score of 6 in the last 3 months.

According to the financials, Orient Beverages has seen a significant growth in its Profit After Tax (PAT) for the quarter, which has increased by 450.3% compared to the average PAT of the previous four quarters. The company's Net Sales for the quarter have also shown a positive trend, being the highest in the last five quarters. Additionally, the company's Earnings per Share (EPS) have also increased, indicating a higher profitability and better returns for shareholders.

However, there are some areas that need improvement for Orient Beverages. The company's interest cost has increased by 17.19% compared to the previous quarter, which could signify increased borrowings. Moreover, the company's Non Operating Income, which is income from non-business activities, is quite high and is 121.22% of the Profit Before Tax (PBT). This could indicate that the company's income from non-business activities may not be sustainable in the long run.

Based on these financials, MarketsMOJO has given a 'Sell' call for Orient Beverages' stock. Investors should carefully consider these factors before making any investment decisions.