Vishwaraj Sugar Industries Receives 'Sell' Call from MarketsMOJO After Decline in Q2 Performance

Nov 18 2024 10:05 AM IST
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Vishwaraj Sugar Industries, a microcap company in the sugar industry, has received a 'Sell' call from MarketsMojo after declaring its financial results for the quarter ending September 2024. The company's net sales, profit before tax, and profit after tax have all seen a significant decline, leading to a negative trend in its near-term sales and profitability.

Vishwaraj Sugar Industries, a microcap company in the sugar industry, recently declared its financial results for the quarter ending September 2024. However, the news is not positive for the company as it has received a 'Sell' call from MarketsMOJO.

According to the financial report, Vishwaraj Sugar has seen a significant decline in its performance in the second quarter of the fiscal year 2024-25. The company's score has fallen from -16 to -28 in the last three months, indicating a very negative trend.

The company's net sales for the quarter were at Rs 92.78 crore, which is a decrease of 27.1% compared to the average net sales of the previous four quarters, which stood at Rs 127.31 crore. This shows a very negative trend in the company's near-term sales.

Similarly, the profit before tax less other income (PBT) for the quarter was at Rs -22.33 crore, a significant decline of 860.2% compared to the average PBT of the previous four quarters, which was Rs 2.94 crore. The profit after tax (PAT) for the quarter was also at a low of Rs -21.74 crore, a decrease of 1867.5% compared to the average PAT of the previous four quarters, which was Rs 1.23 crore.

The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest at -1.52 times in the last five quarters. The net sales for the quarter were also at a low of Rs 92.78 crore, indicating a negative trend in the company's near-term sales.

The operating profit (PBDIT) for the quarter was at a low of Rs -11.12 crore, and the operating profit margin was also at its lowest at -11.99% in the last five quarters. The PBT for the quarter was also at a low of Rs -22.33 crore, showing a negative trend in the company's near-term PBT.

The earnings per share (EPS) for the quarter were at a low of Rs -1.00, indicating a decline in profitability and lower earnings for shareholders. Based on these financial results, MarketsMOJO has given a 'Sell' call for Vishwaraj Sugar Industries.
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