Polychem's Q2 financial report shows negative performance, but strengths in debtors turnover and cash position.

Polychem, a microcap chemical company, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Polychem has seen a very negative performance in the second quarter of the fiscal year 2024-2025, with a score of -20 compared to 1 in the previous quarter. However, there are some positive aspects to the company's financials.

One of the strengths of Polychem is its Debtors Turnover Ratio, which has been consistently improving over the last five half-yearly periods. This indicates that the company has been able to settle its debtors at a faster rate. Additionally, the company has a strong cash position with cash and cash equivalents of Rs 7.43 crore in the last six half-yearly periods, indicating an improvement in short-term liquidity. Polychem has also been distributing higher dividends to its shareholders, with a DPS of Rs 30.00 in the last five years.

On the other hand, there are some areas of concern for Polychem. The company's net sales have fallen by -38.46% year on year, indicating a negative trend in the near term. The same can be seen in the Profit Before Tax (PBT) and Profit After Tax (PAT) figures, which have both seen a significant decline compared to the previous year. The company's operating efficiency has also deteriorated, with a negative operating profit margin of -7.15% in the last five quarters.

Overall, Polychem's financial performance for the quarter ending September 2024 has been disappointing, with a negative trend in key areas. Investors should carefully consider these factors before making any investment decisions.