Patel Engineering Reports Strong Q2 Results, Receives 'Sell' Call from MarketsMOJO

Patel Engineering, a smallcap company in the capital goods industry, has recently announced its financial results for the quarter ending September 2024. The company has received a 'Sell' call from MarketsMOJO, a leading financial analysis platform.

According to the financial report, Patel Engineering has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 6 to 9 in the last three months, indicating a strong financial outlook.

One of the key factors contributing to this positive performance is the increase in Profit After Tax (PAT) for the quarter. At Rs 83.75 crore, the PAT has grown by 50.2% compared to the average of the previous four quarters. This trend is expected to continue in the near future.

Another positive aspect for Patel Engineering is its Debt-Equity Ratio, which is at its lowest in the last five half-yearly periods. This indicates that the company has been reducing its borrowing and relying more on equity capital, which is a good sign for investors.

However, there are some areas of concern for the company as well. The Non Operating Income for the quarter is 48.92% of the Profit Before Tax (PBT), which is quite high. This suggests that the company's income from non-business activities is significant and may not be sustainable in the long run.

Additionally, the Debtors Turnover Ratio for the half-yearly period is at its lowest in the last five periods, indicating a slower pace in settling debts. The company's Non Operating Income for the quarter is also at its highest in the last five quarters, which may not be sustainable.

Overall, Patel Engineering has shown positive financial performance in the recent quarter, but investors should keep an eye on the company's non-business income and debt management in the future.