Shalby's Q2 Financial Results Show Negative Performance, Concerns for Investors

Shalby, a smallcap healthcare services company, has recently declared its financial results for the quarter ending June 2024. According to the latest report, the company has seen a very negative performance in this quarter, with a score of -22 compared to -8 in the previous quarter.

Despite this, there are some positive aspects to Shalby's financials. The company's net sales for the quarter were the highest in the last five quarters, at Rs 278.89 crore. The near-term sales trend is also positive.

However, there are some areas of concern for Shalby. The profit before tax (PBT) less other income has fallen by 27.18% year on year, and the profit after tax (PAT) has also decreased by 29.2% year on year. The near-term trend for both PBT and PAT is very negative. Additionally, the company's interest costs have increased by 25.50% quarter on quarter, indicating increased borrowings. The operating profit to interest ratio is also at its lowest in the last five quarters, showing a deterioration in the company's ability to manage interest payments.

Furthermore, Shalby's inventory turnover ratio has been consistently falling in the last five half-yearly periods, indicating a slower pace of selling inventory. The company's debt-equity ratio is also at its highest in the last five half-yearly periods, suggesting that it is borrowing more to fund its operations and may be facing liquidity issues.

It is worth noting that Shalby's non-operating income for the quarter was the highest in the last five quarters, but this may not be sustainable in the long run.

Overall, Shalby's financial performance for the quarter ending June 2024 has been deemed as very negative, with a recommendation to sell the stock by MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.