SMC Global Securities Faces Evaluation Shift Amid Declining Profits and Increased Leverage

SMC Global Securities, a small-cap player in the capital markets industry, has recently experienced an adjustment in evaluation. This revision reflects a shift in the technical trends associated with the stock, moving from a mildly bullish stance to a sideways position.
Key financial metrics indicate that the company has faced challenges in its recent performance. The latest quarter, Q1 FY25-26, reported a decline in profit before tax (PBT) and profit after tax (PAT), with PBT falling to Rs 37.67 crore, down 17% compared to the previous four-quarter average, and PAT at Rs 29.74 crore, down 18.3%. Additionally, the debt-equity ratio has reached a notable high of 1.39 times, suggesting increased leverage.

Despite these challenges, SMC Global Securities has demonstrated strong long-term fundamental strength, with operating profits growing at a compound annual growth rate (CAGR) of 26.68%. However, the stock has generated a return of -9.12% over the past year, while profits have decreased by 41.8%. The current trading price stands at Rs 134.95, with a 52-week high of Rs 168.35 and a low of Rs 99.00.

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