Shri Bajrang Alliance Reports Significant Financial Decline Amidst Weak Fundamentals

Shri Bajrang Alliance, a microcap player in the Iron & Steel Products industry, has recently undergone an evaluation adjustment reflecting its current financial standing. The company has reported negative financial performance for the quarter ending Q4 FY24-25, with net sales recorded at Rs 80.43 crore, marking a significant decline of 40.9% compared to the previous four-quarter average.
The company's long-term fundamentals appear weak, highlighted by a compound annual growth rate (CAGR) of -21.26% in operating profits over the past five years. Additionally, the ability to service debt is concerning, as indicated by a poor EBIT to interest ratio averaging 1.94. The return on capital employed (ROCE) stands at a low 1.95%, suggesting limited profitability relative to total capital.

Shri Bajrang Alliance has faced challenges over the last four consecutive quarters, with a reported profit before tax (PBT) less other income of Rs -0.38 crore, and cash and cash equivalents at a low of Rs 0.18 crore. The stock has underperformed the market, with a return of -21.77% over the past year, significantly outpacing the BSE500's negative return of -0.19%.

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