Acme Resources Reports Mixed Financial Performance Amid Declining Profits and Low ROE

Acme Resources, a microcap player in the finance and non-banking financial company (NBFC) sector, has recently come under scrutiny due to its financial performance metrics. The company reported a modest average Return on Equity (ROE) of 3.77%, with a current ROE of 2.5, indicating a challenging valuation landscape characterized by a Price to Book Value ratio of 1.1.
Despite a notable stock performance, generating a return of 47.71% over the past year, Acme Resources has faced significant profit declines, with a reported drop of 74.2%. However, the company has shown signs of recovery, declaring positive results in September 2024 after two consecutive quarters of negative performance. Key financial highlights include a profit before tax (PBT) of Rs 2.19 crore, reflecting a remarkable growth of 1464.29%, and a peak profit after tax (PAT) of Rs 2.09 crore, alongside an earnings per share (EPS) of Rs 0.81.

Technically, the stock is positioned in a mildly bullish range, supported by various indicators such as MACD, KST, and OBV. Acme Resources has consistently outperformed the BSE 500 index over multiple time frames, showcasing its market resilience.