Shreyans Industries Reports Negative Financial Performance in Q2 2024

Shreyans Industries, a microcap company in the paper and paper products industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financials, Shreyans Industries has seen a very negative performance in the second quarter of the fiscal year 2024-2025. The company's score has fallen from -22 to -27 in the last three months.

However, there are some positive aspects to the company's financials. Shreyans Industries has been consistently distributing a higher dividend per share (DPS) annually, with the highest being Rs 5.00 in the last five years. This indicates that the company is generating profits and sharing them with its shareholders.

On the other hand, there are some concerning factors in the financials as well. The net sales for the quarter have fallen by -22.62% year on year, indicating a negative trend in the company's sales. The profit before tax less other income (PBT) has also seen a significant decline of -86.55% year on year, and the profit after tax (PAT) has fallen by -53.9% year on year. This shows a negative trend in the company's profitability.

The operating profit (PBDIT) and PBT have also been consistently falling in the last five quarters, indicating a negative trend in the company's operations. The operating profit margin has also reached its lowest at 5.70%, indicating a decline in the company's efficiency.

Moreover, the company's non-operating income is 77.66% of its PBT, which suggests that the company's income from non-business activities is high, which may not be a sustainable business model. The earnings per share (EPS) have also declined, creating lower earnings for shareholders. Additionally, the dividend payout ratio (DPR) has been consistently low, indicating that the company is distributing a lower proportion of its profits as dividends.

In conclusion, Shreyans Industries has seen a negative financial performance in the recent quarter, with declining sales and profitability. Investors should carefully consider these factors before making any investment decisions.