Sayaji Hotels' Q1 Financial Results Show Mixed Performance, Investors Should Analyze Carefully

Sayaji Hotels, a microcap company in the hotel industry, recently announced its financial results for the quarter ending March 2024. The results, declared on May 29, have received a "Strong Sell" call from MarketsMOJO.

According to the financials, Sayaji Hotels has seen a negative performance in the quarter, with a score of -13, which has improved from -23 in the last three months. However, there are some positive aspects to the company's performance.

The Profit After Tax (PAT) for the quarter was Rs 8.01 crore, showing a growth of 30.2% year on year. The near-term trend for PAT is also positive. On the other hand, the Net Sales for the quarter were Rs 33.76 crore, showing a decline of -21.18% year on year. The near-term trend for sales is very negative.

Another concerning aspect of Sayaji Hotels' financials is the rising interest cost, which has grown by 28.17% quarter on quarter. This signifies increased borrowings by the company. Additionally, the Non Operating Income for the quarter was at its highest in the last five quarters, at Rs 1.91 crore. However, this increase in income from non-business activities may not be sustainable.

Overall, Sayaji Hotels' financial performance for the quarter ending March 2024 has been mixed, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.