Olympic Cards Faces Financial Struggles Amid High Debt and Declining Sales

Olympic Cards, a microcap company in the Printing & Publishing industry, has recently undergone an adjustment in its evaluation. The company has reported flat financial performance for the third quarter of FY24-25, with net sales for the first nine months at Rs 6.53 crore, reflecting a decline of 27.85%. Additionally, the company is facing challenges with a high debt burden, evidenced by a debt-equity ratio of 7.53 times, which indicates a weak long-term fundamental strength.
The ability to service this debt is also concerning, as highlighted by a debt-to-EBITDA ratio of 13.16 times. Furthermore, Olympic Cards has reported losses, resulting in a negative return on equity. The cash and cash equivalents have reached a low of Rs 0.24 crore, and the debtors turnover ratio stands at a mere 2.06 times, suggesting liquidity issues.

In terms of market performance, the stock has underperformed relative to the broader market, generating negative returns of 11.36% over the past year, while the BSE 500 index has shown a slight gain. The technical trend remains sideways, indicating a lack of clear price momentum.

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