VJTF Eduservices Shows Positive Performance, But Concerns Linger in Financial Results

VJTF Eduservices, a microcap educational institution, has recently announced its financial results for the quarter ending June 2024. The company has shown positive performance with a score of 9, which is an improvement from the previous quarter's score of 4.

However, there are some areas that are not working in favor of VJTF Eduservices based on the financials of the quarter. The Profit Before Tax (PBT) has fallen by 143.9% to Rs -5.92 crore, compared to the average PBT of the previous four quarters which was Rs -2.43 crore. This indicates a very negative trend in the near term for PBT.

Similarly, the Profit After Tax (PAT) has also fallen by 39.8% to Rs 10.31 crore, compared to the average PAT of the previous four quarters which was Rs 17.13 crore. This shows a very negative trend in the near term for PAT.

One concerning factor is the company's high Non Operating Income, which is 149.01% of the Profit Before Tax. This means that a significant portion of the company's income is coming from non-business activities, which may not be a sustainable business model in the long run.

Moreover, the Non Operating Income for the quarter is the highest in the last five quarters, at Rs 18.00 crore. This increase in income from non-business activities may not be sustainable and could potentially impact the company's financial performance in the future.

Based on these financial results, MarketsMOJO has given a 'Sell' call for VJTF Eduservices' stock. Investors should carefully consider these factors before making any investment decisions.