Enbee Trade & Finance Faces Volatility Despite Strong Operating Profit Growth

Enbee Trade & Finance, a microcap player in the finance/NBFC sector, has experienced significant volatility today, hitting a new 52-week low of Rs. 0.7. The stock has underperformed its sector by 2.59% and has seen a consecutive decline over the past five days, resulting in a total drop of 20.45%. Currently, Enbee Trade is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.
Despite these challenges, the company reported a remarkable growth in operating profit of 132.64% for the quarter ending March 2025, alongside a substantial increase in net sales, which reached Rs. 11.41 crore, marking a growth of 100.18%. The profit before tax (PBT) for the quarter was Rs. 2.09 crore, reflecting a staggering growth of 375%. Additionally, the company has consistently posted positive results over the last four quarters, with a notable profit after tax (PAT) of Rs. 1.64 crore.

However, the long-term fundamental strength remains weak, with an average return on equity (ROE) of 7.73%. Over the past year, Enbee Trade & Finance has seen a decline of 40.23%, contrasting sharply with the Sensex's performance of 10.18%.