Zeal Aqua Reports Positive Financial Results for Q2 2024, But Concerns Remain.

Zeal Aqua, a microcap company in the aquaculture industry, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Zeal Aqua has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 5 to 7 in the last 3 months, indicating a positive trend.

One of the key factors contributing to this positive performance is the company's Profit After Tax (PAT), which has grown by 121.7% year on year to reach Rs 2.35 crore. The net sales for the quarter also saw a significant increase, reaching Rs 152.16 crore, which is the highest in the last five quarters. This shows a positive trend in the company's sales.

However, there are some areas that need improvement for Zeal Aqua. The company's Operating Profit to Interest ratio has decreased to 1.15 times, which is the lowest in the last five quarters. This indicates a deteriorating ability to manage interest payments. Additionally, the interest cost has increased by 22.08% quarter on quarter, which suggests an increase in borrowings.

Another concern is the company's high non-operating income, which accounts for 97.87% of the Profit Before Tax (PBT). This means that a significant portion of the company's income is coming from non-business activities, which may not be sustainable in the long run. The non-operating income for the quarter was also the highest in the last five quarters, at Rs 2.30 crore.

Overall, Zeal Aqua has shown positive financial performance in the recent quarter, but there are some areas that need attention. Investors are advised to hold their stock and keep an eye on the company's future financial reports.