Kimia Biosciences Faces Evaluation Shift Amid Declining Sales and High Leverage Concerns

Kimia Biosciences, a microcap company in the Pharmaceuticals & Biotechnology sector, has recently experienced an adjustment in its evaluation. This revision reflects a shift in the technical outlook, moving from a mildly bullish stance to a mildly bearish one.
Key financial metrics indicate that the company has faced challenges in its recent performance. The net sales for the latest quarter stood at Rs 23.58 crore, showing a decline of 20.7% compared to the previous four-quarter average. Additionally, the profit before tax (PBT) less other income reported a significant drop, while the profit after tax (PAT) also fell sharply by 75% against the previous average.

The company's debt situation is notable, with a debt-equity ratio of 11.22 times, suggesting a high level of leverage. This has contributed to a weak long-term fundamental strength, as evidenced by an operating profit decline of 251.46% over the past five years. Furthermore, the return on capital employed (ROCE) is relatively low at 5.80%, indicating limited profitability per unit of capital.

Overall, the adjustment in evaluation for Kimia Biosciences underscores the company's current challenges and the broader trends affecting its market position.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.