Shri Jagdamba Polymers Reports Positive Q2 Results, Highest Net Sales in 5 Quarters

Shri Jagdamba Polymers, a microcap company in the packaging industry, has recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is 'Hold'.

According to the financial report, Shri Jagdamba Polymers has shown a positive performance in the second quarter of FY24-25. The company's score has improved from 14 to 8 in the last three months.

The company's net sales for the quarter were at its highest in the last five quarters, reaching Rs 125.52 crore. This is a positive trend for the company's sales in the near term. The net sales have also grown by 29.4% compared to the average net sales of the previous four quarters, which were at Rs 97.02 crore.

Shri Jagdamba Polymers has also been distributing higher dividends from its profits, with the dividend per share (DPS) being at its highest in the last five years at Rs 0.75. The dividend payout ratio (DPR) has also been at its highest in the last five years at 2.04%, indicating that the company is distributing a higher proportion of its profits as dividends.

However, there are some areas that need improvement for Shri Jagdamba Polymers. The company's operating cash flow has been at its lowest in the last three years at Rs -11.72 crore. This indicates that the company's cash revenues from business operations are declining. Additionally, the non-operating income for the quarter was at its highest in the last five quarters at Rs 2.37 crore. While this may seem positive, it is important to note that this income may not be sustainable as it comes from non-business activities.

Overall, Shri Jagdamba Polymers has shown a positive financial performance in the recent quarter, with some areas that need improvement. Investors are advised to hold their stocks in the company for now, as recommended by MarketsMOJO.