Himalaya Food International Faces Significant Volatility Amid Broader Market Trends
Himalaya Food International, a microcap in the FMCG sector, has reached a new 52-week low amid significant volatility and a 52.29% decline over the past year. Despite weak long-term fundamentals and challenges in debt servicing, the company reported positive results for September 2024, showing a notable profit increase.
Himalaya Food International, a microcap player in the FMCG sector, has experienced significant volatility, hitting a new 52-week low of Rs. 11.81 today. The stock has underperformed its sector by 7.2%, reflecting broader market trends as the Sensex has also dipped, currently trading at 74,115.17, down 0.29% after an initial positive opening.Over the past year, Himalaya Food has seen a staggering decline of 52.29%, contrasting sharply with the Sensex's near flat performance. The company's long-term fundamentals appear weak, with a -1.76% CAGR growth in operating profits over the last five years and a concerning EBIT to interest ratio of -8.44, indicating challenges in servicing its debt.
Despite these struggles, the company reported positive results for September 2024, with a PBDIT of Rs. 3.47 crore and an operating profit to net sales ratio of 30.33%. The stock's valuation remains attractive, trading at a 0.5 price-to-book value, and has shown a significant profit increase of 117.2% over the past year, although it continues to face bearish technical indicators.
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