Surat Trade reports strong Q2 results with record net sales and PAT growth

Surat Trade & Merchantile, a microcap textile company, has 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, Surat Trade has shown a very positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 22 to 20 in the last three months.

One of the key factors contributing to this positive performance is the increase in net sales. The company's net sales for the quarter were Rs 24.11 crore, which is a growth of 41.5% compared to the average net sales of the previous four quarters. This indicates a strong sales trend in the near term.

Moreover, the net sales for the quarter were the highest in the last five quarters, further highlighting the positive sales trend for Surat Trade.

Another positive aspect of the financial report is the increase in Profit After Tax (PAT). The company's PAT for the quarter was Rs 4.05 crore, which is a growth of 35.8% compared to the average PAT of the previous four quarters. This indicates a positive PAT trend in the near term.

However, one area of concern for Surat Trade is its non-operating income, which is 137.50% of the Profit Before Tax (PBT). This suggests that the company's income from non-business activities is high, which may not be a sustainable business model.

Overall, Surat Trade has shown a strong financial performance in the quarter ending September 2024. Investors should keep an eye on the company's future financial reports to see if this positive trend continues.