West Coast Paper Mills Reports Disappointing Q3 Results, Stock Call 'Sell' by MarketsMOJO

West Coast Paper Mills, a smallcap company in the paper and paper products industry, has recently declared its financial results for the quarter ending September 2024. According to MarketsMOJO, a leading financial analysis platform, the stock call for West Coast Paper is 'Sell'.

The company has reported a very negative financial performance for the quarter, with a score of -24, a significant decrease from -21 in the previous quarter. This decline in score can be attributed to various factors, as seen in the Sep 2024 financials.

One of the major concerns for West Coast Paper is the decline in Profit Before Tax (PBT) less Other Income, which has fallen by 51.1% to Rs 80.78 crore compared to the average PBT of the previous four quarters, which was Rs 165.07 crore. This trend is expected to continue in the near term.

Similarly, the Profit After Tax (PAT) has also seen a significant decline of 36.4% to Rs 89.11 crore compared to the average PAT of the previous four quarters, which was Rs 140.09 crore. This is the lowest PAT in the last five quarters and the trend is expected to continue in the near term.

The company's operating profit (PBDIT) has also seen a decline, reaching its lowest at Rs 142.06 crore in the last five quarters. This indicates a negative trend in the near term. The operating profit margin has also reached its lowest at 13.60%, indicating a deterioration in the company's efficiency.

Moreover, the company's non-operating income is 40.21% of its PBT, which suggests that a significant portion of its income is coming from non-business activities, which is not a sustainable business model.

The earnings per share (EPS) have also declined to its lowest at Rs 13.49 in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

In terms of liquidity, the company's cash and cash equivalents have reached its lowest at Rs 36.14 crore in the last six half-yearly periods, indicating a deteriorating short-term liquidity.

Additionally, the debtors turnover ratio has also reached its lowest at 12.29 times in the last five half-yearly periods, indicating a slowdown in the company's pace of settling its debtors.

Overall, the financial results for the quarter ending September 2024 for West Coast Paper Mills have been disappointing, with various factors contributing to the decline in its performance. Investors are advised to take note of these factors before making any investment decisions.