Recent Price Movement and Market Context
On the day the new low was recorded, Anik Industries’ stock price fell by 2.47% intraday, closing below all major moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the sustained bearish momentum. The stock has been on a losing streak for four consecutive sessions, cumulatively declining by 4.66% during this period. In comparison, the Trading & Distributors sector, to which Anik Industries belongs, outperformed the stock by 1.67% on the same day.
The broader market environment also showed signs of weakness. The Sensex opened 183.12 points lower and closed down by 461.67 points, or 0.76%, at 84,316.35. Despite this decline, the Sensex remains within 2.19% of its 52-week high of 86,159.02, indicating that the market overall has not mirrored the steep declines seen in Anik Industries’ shares.
Long-Term Performance and Valuation Metrics
Over the past year, Anik Industries has delivered a negative return of 54.49%, a stark contrast to the Sensex’s positive 7.89% gain over the same period. The stock’s 52-week high was Rs.131.9, highlighting the extent of the decline from its peak. This underperformance extends beyond the last year, with the stock lagging the BSE500 index across one-year, three-year, and three-month timeframes.
Valuation metrics further illustrate the challenges faced by the company. The stock trades at a price-to-book value of 0.4, which is considered very expensive relative to its peers’ historical averages. Despite this premium valuation, the company’s return on equity (ROE) remains low, averaging 1.51% over recent years and currently at 0.4%. This indicates limited profitability generated per unit of shareholders’ funds.
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Financial Strength and Profitability Indicators
The company’s long-term financial health is reflected in its compound annual growth rate (CAGR) of net sales, which has declined by 4.88% over the last five years. This negative growth trend has contributed to the subdued investor sentiment. Additionally, Anik Industries’ ability to service its debt is limited, with an average EBIT to interest coverage ratio of just 0.33, signalling potential difficulties in meeting interest obligations comfortably.
Despite these headwinds, the company has reported positive results for five consecutive quarters. The profit after tax (PAT) for the nine-month period stands at Rs.0.94 crore, while quarterly net sales reached a high of Rs.71.68 crore. The debtors turnover ratio for the half-year is also at its peak, recorded at 2.49 times, indicating efficient collection of receivables during this period.
Comparative Performance and Market Position
While the stock’s price has declined sharply, the company’s profits have risen by 239% over the past year, resulting in a price/earnings to growth (PEG) ratio of 0.3. This disparity between profit growth and share price performance highlights a disconnect that may be influenced by broader market perceptions and valuation concerns.
Majority shareholding remains with non-institutional investors, which may affect liquidity and trading dynamics. The stock’s Mojo Score stands at 22.0, with a Mojo Grade of Strong Sell as of 12 August 2025, an upgrade from the previous Sell rating. The Market Cap Grade is rated 4, reflecting the company’s micro-cap status within the Trading & Distributors sector.
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Technical and Market Sentiment Overview
The stock’s position below all key moving averages indicates a sustained bearish trend, with no immediate technical support levels breached to suggest a reversal. The broader market’s relative strength, as seen in the Sensex’s proximity to its 52-week high, contrasts with Anik Industries’ performance, underscoring company-specific factors influencing the share price.
Given the company’s financial metrics, valuation, and recent price action, the stock remains under pressure. The combination of weak long-term sales growth, limited debt servicing capacity, and low profitability ratios contribute to the current market valuation and sentiment.
Summary of Key Metrics
To summarise, Anik Industries Ltd’s stock has reached a new 52-week low of Rs.49.7, reflecting a 54.49% decline over the past year. The company’s financial indicators reveal challenges in growth and profitability, with a CAGR net sales decline of 4.88%, an EBIT to interest ratio of 0.33, and an average ROE of 1.51%. Despite recent profit increases and positive quarterly results, the stock’s valuation remains elevated relative to peers, with a price-to-book ratio of 0.4 and a Strong Sell Mojo Grade.
The stock’s underperformance relative to the sector and broader market indices, combined with its technical positioning below all major moving averages, highlights the ongoing pressures faced by Anik Industries Ltd in the current market environment.
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