Positive Financial Performance for Bombay Cycle in Q2 2024 Despite High Debt Ratio

Debt to Equity Ratio - Annually: Highest at 0.02 in the last five years.Company has a higher proportion of debt in its capital structure, which may increase financial risk.

Bombay Cycle & Motor Agency, a microcap trading company, recently announced its financial results for the quarter ending September 2024. The company has received a 'Sell' call from MarketsMOJO, a leading financial analysis firm.

Despite the negative stock call, Bombay Cycle has shown positive financial performance in the second quarter of the fiscal year 2024-2025. The company's score has fallen from 7 to 6 in the last three months, indicating a slight decline in overall performance.

However, there are several factors that are working in favor of Bombay Cycle based on its September 2024 financials. The company has recorded the highest operating cash flow of Rs 4.60 crore annually, with a consistent growth in the last three years. This indicates that the company has been able to generate higher cash revenues from its business operations.

Moreover, the company's profit before tax less other income (PBT) for the quarter was at its highest in the last five quarters, standing at Rs 0.54 crore. This shows a positive trend in the near term for PBT. Similarly, the profit after tax (PAT) for the quarter was also at its highest in the last five quarters, at Rs 1.22 crore. This indicates a positive trend in the near term for PAT.

Another positive aspect of Bombay Cycle's financials is its earnings per share (EPS) for the quarter, which was at its highest in the last five quarters at Rs 30.50. This shows an increasing profitability and the company's ability to generate higher earnings for its shareholders.

However, there are some areas of concern for Bombay Cycle based on its September 2024 financials. The company's dividend payout ratio (DPR) for the year was at its lowest in the last five years, standing at 5.87%. This means that the company is distributing a lower proportion of its profits as dividends to its shareholders.

Additionally, the company's debt to equity ratio for the year was at its highest in the last five years, standing at 0.02. This indicates that the company has a higher proportion of debt in its capital structure, which may increase its financial risk.

Overall, Bombay Cycle & Motor Agency has shown positive financial performance in the second quarter of the fiscal year 2024-2025. However, investors should carefully consider all the factors before making any investment decisions.