Advik Capital Hits 52-Week Low Amid Broader Market Decline and Rising Interest Expenses

Advik Capital, a microcap player in the electric equipment industry, has seen significant activity today, hitting a new 52-week low of Rs. 1.74. This decline comes amid a broader market trend, as the Sensex opened lower and is currently trading down by 0.19%. Despite the challenging market conditions, Advik Capital's stock has outperformed its sector by 1.84% today.
Over the past year, Advik Capital has faced a notable decline of 39.74%, contrasting sharply with the Sensex's modest drop of 1.25%. The company's performance metrics reveal a concerning trend, with net sales reported at Rs. 65.99 crore, marking a flat result for December 2024. Additionally, the company has recorded its highest interest expenses at Rs. 3.31 crore, while non-operating income constitutes 45.95% of profit before tax.

Despite these challenges, Advik Capital has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 149.07% and operating profit rising by 75.38%. The company's return on capital employed (ROCE) stands at 4.2, indicating an attractive valuation relative to its peers. However, the stock remains technically in a bearish range, with moving averages indicating a downward trend.