Tantia Constructions Reports Positive Trends in Financials, But Sales and Liquidity Need Improvement

Tantia Constructions, a microcap company in the capital goods industry, recently announced its financial results for the quarter ending June 2024. The stock call by MarketsMOJO for Tantia Constructions is 'Sell'.

According to the financial report, Tantia Constructions has seen a negative performance in the quarter, with a score of -13, which has improved from -26 in the last three months. However, there are some positive aspects to the company's financials.

The company's Profit Before Tax less Other Income (PBT) for the quarter was the highest at Rs 0.75 crore and has grown each quarter in the last five quarters. This shows a very positive trend in the near term for PBT. Similarly, the Operating Profit (PBDIT) for the quarter was also the highest at Rs 1.49 crore in the last five quarters, with a positive trend in the near term.

Tantia Constructions has also shown improvement in its Operating Profit Margin, which was the highest at 19.30% in the last five quarters. This indicates that the company's efficiency has improved. The Profit After Tax (PAT) for the quarter was also the highest at Rs 0.99 crore in the last five quarters, with a positive trend in the near term. The company's Earnings per Share (EPS) for the quarter was the highest at Rs 0.64, showing an increase in profitability and creating higher earnings for shareholders.

However, there are some areas where Tantia Constructions needs to work on. The Net Sales for the quarter were at Rs 7.72 crore, which has fallen by -59.54% Year on Year (YoY). The near term sales trend is also very negative. The Inventory Turnover Ratio for the half-yearly period was the lowest at 1.75 times and has fallen each half year in the last five periods. This indicates that the company's pace of selling inventory has slowed down.

The company's Cash and Cash Equivalents for the half-yearly period were at the lowest at Rs 8.33 crore in the last six periods, showing a deterioration in short-term liquidity. The Debtors Turnover Ratio for the half-yearly period was also the lowest at 2.04 times in the last five periods, indicating a slowdown in the company's pace of settling its debtors.

Overall, Tantia Constructions has shown some positive improvements in its financials, but there are also some areas that need attention. Investors should carefully consider these factors before making any investment decisions.