Active Clothing Co Faces Significant Volatility Amidst Financial Challenges and Long-Term Growth Potential

Active Clothing Co, a microcap player in the textile industry, has experienced significant volatility today, hitting a new 52-week low of Rs. 82.55. The stock has underperformed its sector by 3.47%, marking its sixth consecutive day of decline with a total drop of 11.37% during this period. Despite opening with a gain of 7.36%, the stock's intraday performance saw a high of Rs. 97.85 and a low of Rs. 82.55, reflecting an intraday volatility of 8.48%.
In terms of financial metrics, Active Clothing Co has reported a low Return on Capital Employed (ROCE) of 7.96% and a high Debt to EBITDA ratio of 4.65, indicating challenges in debt servicing. Over the past year, the stock has generated a return of -18.79%, contrasting sharply with the Sensex's performance of 12.55%. However, the company has shown healthy long-term growth, with operating profit increasing at an annual rate of 44.99% and net profit surging by 223.71% in its latest quarterly results. Despite its recent struggles, the stock is trading at a discount compared to its peers, with a PEG ratio of 0.2.