Recent Price Movement and Market Context
The stock price of Edvenswa Enterprises has been retreating for seven consecutive trading sessions, culminating in a cumulative return of -14.13% over this period. This decline has brought the share price down to Rs.33.01, the lowest level recorded in the past year. The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
In contrast, the broader market has shown resilience. The Sensex opened 108.22 points higher and is trading at 85,013.69, up 0.13% on the day. The index remains close to its 52-week high of 85,801.70, just 0.93% away, supported by bullish moving averages where the 50-day moving average is positioned above the 200-day moving average. Mid-cap stocks are leading the market gains, with the BSE Mid Cap index rising by 0.24% today.
Financial Performance Overview
Edvenswa Enterprises has experienced a challenging financial year. Over the last 12 months, the stock has generated a return of -44.09%, significantly underperforming the Sensex, which has recorded a positive return of 6.12% in the same period. The company’s 52-week high was Rs.74.70, highlighting the extent of the recent price contraction.
Quarterly financial metrics reveal subdued profitability. The Profit After Tax (PAT) for the quarter stood at Rs.1.81 crore, reflecting a decline of 22.0% compared to the previous period. Earnings before interest, depreciation, and taxes (PBDIT) for the quarter were Rs.3.04 crore, marking one of the lowest levels recorded. The Return on Capital Employed (ROCE) for the half-year was 10.69%, the lowest in recent assessments, signalling pressure on capital efficiency.
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Long-Term Growth and Valuation Metrics
Despite recent setbacks, Edvenswa Enterprises has demonstrated healthy long-term growth in net sales, with an annual growth rate of 43.20%. This suggests that the company has been able to expand its revenue base steadily over time. The Return on Equity (ROE) stands at 9.8%, which, combined with a Price to Book Value of 0.8, indicates a valuation that is considered attractive relative to its peers.
Over the past year, while the stock price has declined, the company’s profits have risen by 51.3%, resulting in a Price/Earnings to Growth (PEG) ratio of 0.2. This metric points to a disconnect between earnings growth and market valuation, reflecting the complex dynamics influencing the stock price.
Capital Structure and Shareholding
Edvenswa Enterprises maintains a conservative capital structure, with an average Debt to Equity ratio of zero, indicating no reliance on debt financing. The majority shareholding is held by promoters, which often suggests a stable ownership structure.
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Comparative Performance and Sector Positioning
When compared to the BSE500 index, Edvenswa Enterprises has underperformed over multiple time frames including the last three years, one year, and three months. This underperformance is notable given the sector’s overall trends and the broader market’s positive trajectory. The Computers - Software & Consulting sector has generally shown resilience, but Edvenswa’s stock price has not mirrored this trend.
The stock’s current trading below all major moving averages further emphasises the subdued market sentiment. This technical positioning often reflects a cautious stance among market participants.
Summary of Key Metrics
To summarise, Edvenswa Enterprises is currently trading at Rs.33.01, its lowest level in 52 weeks, following a seven-day consecutive decline. The company’s quarterly PAT is Rs.1.81 crore, down by 22.0%, with PBDIT at Rs.3.04 crore. The half-year ROCE is 10.69%, while the ROE stands at 9.8%. Net sales have grown at an annual rate of 43.20%, and profits have increased by 51.3% over the past year. The stock’s Price to Book Value is 0.8, and the PEG ratio is 0.2. The company carries no debt and is predominantly promoter-owned.
These figures provide a comprehensive view of the company’s current financial and market position, highlighting the contrast between operational growth and market valuation trends.
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