Sandesh Reports Positive Q2 Results, But Concerns Remain for Investors

Sandesh, a smallcap company in the printing and publishing industry, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Sandesh has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 7 to 8 in the last three months, indicating a growth in its operations.

One of the key factors contributing to Sandesh's success is its strong operating cash flow. The company has recorded the highest annual operating cash flow of Rs 154.49 crore and has shown consistent growth in the last three years.

However, there are some areas of concern for Sandesh. The company's profit after tax (PAT) for the quarter has fallen by 26.1% compared to the average PAT of the previous four quarters. This trend is expected to continue in the near term. Similarly, the net sales for the quarter have also decreased by 11.4% compared to the average of the previous four quarters.

Another issue highlighted in the financial report is the high non-operating income, which accounts for 77.30% of the profit before tax (PBT). This indicates that the company's income from non-business activities is significant, which may not be a sustainable business model.

Moreover, Sandesh's cash and cash equivalents have decreased to Rs 35.84 crore in the last six half-yearly periods, indicating a decline in short-term liquidity.

Overall, Sandesh has shown positive financial performance in the recent quarter, but there are some concerns that need to be addressed. Investors are advised to hold their positions in the company's stock and monitor its performance closely.