Star Paper Mills Reports Negative Performance in Q2, Receives 'Strong Sell' Rating

Nov 16 2024 05:16 PM IST
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Star Paper Mills, a microcap company in the paper and paper products industry, reported a negative performance in the second quarter of fiscal year 2024-2025. The decline in Profit Before Tax and Profit After Tax, along with a high proportion of Non-Operating Income, raises concerns about the company's financial sustainability. MarketsMojo has given a 'Strong Sell' call for the company's stock.

Star Paper Mills, 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 financial report, Star Paper Mills has seen a negative performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from -10 to -6 in the last three months, but it is still in the negative range.

One of the major factors contributing to this negative performance is the decline in Profit Before Tax (PBT) by 45.84% year on year. This trend is expected to continue in the near term. Additionally, the Profit After Tax (PAT) for the nine-month period has also decreased by 20.35% year on year, indicating a negative trend in the company's financials.

Another concerning aspect is the high proportion of Non-Operating Income, which accounts for 57.55% of the PBT. This suggests that the company's income from non-business activities is significant, which may not be a sustainable business model in the long run.

Overall, the financial results for the quarter ending September 2024 show a negative trend for Star Paper Mills. Investors should take note of the 'Strong Sell' call given by MarketsMOJO and carefully consider their investment decisions.
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