Simplex Castings shows strong financial performance in Q2 2024, advised to hold by MarketsMOJO.

Simplex Castings, a microcap company in the castings and forgings industry, has recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is 'Hold'.

According to the financials, Simplex Castings has shown a very positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 18 to 26 in the last three months.

One of the key factors contributing to this positive performance is the company's ability to manage interest payments, with the Operating Profit to Interest ratio being the highest at 3.50 times and growing each quarter in the last five quarters.

The Profit Before Tax less Other Income (PBT) has also shown a significant growth of 1277.50% year on year, with a very positive trend in the near term. Similarly, the Profit After Tax (PAT) has grown by 1633.3% year on year, with a positive trend in the near term.

The company's Operating Profit (PBDIT) has also been consistently high in the last five quarters, with a positive trend in the near term. The Operating Profit Margin has also shown improvement, being the highest at 26.82% in the last five quarters, indicating an increase in efficiency.

Simplex Castings has also shown an increase in earnings per share (EPS), with the highest being Rs 5.06 in the last five quarters. This indicates that the company has been able to create higher earnings for its shareholders.

However, there are some areas that need improvement, as seen in the financials. The Operating Cash Flow has been consistently falling in the last three years, with the lowest being Rs -2.96 crore in the last year. The company's short term liquidity has also deteriorated, with the lowest cash and cash equivalents being Rs 2.85 crore in the last six half yearly periods.

Overall, Simplex Castings 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, as recommended by MarketsMOJO.