Rajapalayam Mills' Q3 financials show decline, receives 'Strong Sell' call from MarketsMOJO

Rajapalayam Mills, a microcap textile company, recently declared its financial results for the quarter ending September 2024. The stock has been given a 'Strong Sell' call by MarketsMOJO, indicating a negative outlook for the company.

According to the financial report, Rajapalayam Mills has seen a decline in its performance with a score of -6, compared to -13 in the previous quarter. However, there are some positive aspects to the company's financials. The operating cash flow for the year has been the highest in the last three years at Rs 148.46 crore, indicating a strong revenue generation from business operations. Additionally, the dividend payout ratio (DPR) for the year has been the highest in the last five years at 1.24%, showing that the company is distributing a higher proportion of its profits as dividends.

On the other hand, there are some concerning factors in the financial report. The profit before tax less other income (PBT) for the quarter has fallen by -385.99% year on year, indicating a very negative trend in the near term. Similarly, the profit after tax (PAT) for the quarter has also fallen by -154.4% year on year, further highlighting the negative trend. Additionally, the interest cost for the nine-month period has increased by 21.67%, indicating a rise in borrowings for the company.

Overall, Rajapalayam Mills has seen a decline in its financial performance for the quarter ending September 2024. With a 'Strong Sell' call from MarketsMOJO, investors may want to carefully consider their investments in the company.