PSP Projects' Q1 Financial Results Show Mixed Performance, MarketsMOJO Issues 'Sell' Call

PSP Projects, a smallcap real estate company, recently announced its financial results for the quarter ended June 2024. The company has seen a negative performance in this quarter, with a score of -8, which has improved from -24 in the last three months.

Despite this, there are some positive aspects to PSP Projects' financials. The net sales for the quarter were at Rs 623.06 crore, showing a growth of 21.31% year on year. The company's operating profit (PBDIT) for the quarter was the highest in the last five quarters at Rs 73.96 crore, indicating a positive trend in the near term. Additionally, the company has been able to settle its debtors faster, with a debtors turnover ratio of 7.32 times in the last five half yearly periods.

However, there are also some areas of concern for PSP Projects. The inventory turnover ratio for the company has been consistently falling in the last five half yearly periods, indicating a slower pace of selling inventory. The interest cost for the company has also risen by 38.22% over the preceding nine months period, which could signify increased borrowings. Furthermore, the profit after tax (PAT) for the quarter has fallen by -8.4% year on year, and the debt-equity ratio is at its highest in the last five half yearly periods, indicating a potential liquidity strain.

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