Calcom Vision Faces Significant Volatility Amid Weak Fundamentals and High Debt Concerns

Calcom Vision, a microcap player in the Consumer Durables - Electronics sector, has experienced significant volatility today, hitting a new 52-week low of Rs. 75.2. This marks a notable decline, as the stock has underperformed its sector by 2.83% and has seen a consecutive drop over the past three days, totaling a decline of 16.68%. The stock opened with a loss of 3.96% and reached an intraday low of Rs. 75.2.
In terms of performance metrics, Calcom Vision's long-term fundamentals appear weak, with a Return on Capital Employed (ROCE) of just 5.79%. The company has struggled with growth, as its operating profit has only increased at an annual rate of 17.66% over the past five years. Additionally, the high Debt to EBITDA ratio of 3.40 times indicates challenges in servicing debt.

Despite these challenges, the company reported positive results in December 2024, with net sales growing by 27.3% to Rs. 44.66 crore. However, the stock's overall performance remains concerning, with a 1-year decline of 46.70%, contrasting sharply with the Sensex's gain of 6.09% during the same period.