Narmada Gelatines Faces Increased Bearish Outlook Amid Financial Challenges and Underperformance

Apr 09 2025 08:11 AM IST
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Narmada Gelatines, a microcap chemicals company, has undergone a recent evaluation adjustment reflecting a shift in technical indicators. Despite steady growth in net sales and operating profit over five years, the company faces challenges, including a decline in cash reserves and underperformance compared to the broader market.
Narmada Gelatines, a microcap company in the chemicals industry, has recently experienced an adjustment in its evaluation. This revision reflects a shift in the technical indicators that assess the stock's performance. The technical trend has transitioned from a mildly bearish stance to a more pronounced bearish outlook, influenced by various metrics such as MACD, Bollinger Bands, and KST.

In terms of financial health, Narmada Gelatines has shown a flat performance in its latest quarterly results for Q3 FY24-25. Over the past five years, net sales have grown at an annual rate of 7.15%, while operating profit has increased by 10.25%. However, the company has faced challenges, including a notable decline in cash and cash equivalents, which have reached their lowest point at Rs 2.17 crore.

Despite a low debt-to-equity ratio and an attractive return on capital employed (ROCE) of 15.2, the stock has underperformed the broader market, with a return of -18.70% over the past year compared to the BSE 500's -2.00%. This context provides a comprehensive view of the underlying trends affecting Narmada Gelatines.

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