RSWM Ltd's Q1 FY25 Financial Results Show Mixed Performance, MarketsMOJO Gives 'Sell' Call

RSWM Ltd, a smallcap textile company, has recently declared its financial results for the quarter ended June 2024. The company has seen a flat performance in this quarter, with a score of -3, which has improved from -11 in the last three months.

Despite the flat performance, there are some positive aspects to the company’s financials. The operating profit to interest ratio for the quarter is the highest it has been in the last five quarters, indicating an improvement in the company’s ability to manage interest payments. The net sales for the quarter are also the highest in the last five quarters, showing a positive trend in the company’s sales. The operating profit (PBDIT) for the quarter is also the highest it has been in the last five quarters, indicating a positive trend in the company’s operating profit.

However, there are also some areas of concern in the financials. The interest cost for the half-yearly period has grown by 51.77% compared to the previous half-yearly period, indicating increased borrowings by the company. The debt-equity ratio for the half-yearly period is also the highest it has been in the last five periods, indicating that the company is borrowing more to fund its operations and its liquidity situation may be stressed. Additionally, the debtors turnover ratio for the half-yearly period is the lowest it has been in the last five periods, indicating a slowdown in the company’s pace of settling its debtors.

Based on these financials, MarketsMOJO has given a ‘Sell’ call for RSWM Ltd’s stock. Investors should carefully consider these financials before making any investment decisions.