Hipolin Faces Continued Decline Amid Broader Market Challenges and Debt Concerns

Hipolin, a microcap player in the FMCG sector, has seen significant activity today as its stock price reached a new 52-week low of Rs. 93. This decline marks a continued downward trend, with the stock underperforming its sector by 1.52% and experiencing a total drop of 6.72% over the past four days. Currently, Hipolin is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish technical outlook. In the broader market context, the Sensex has also faced challenges, falling by 577.40 points to 77,444.05 after a flat opening. Despite a recent three-week rise, the Sensex is trading above its 50-day moving average, which is below its 200-day average. Hipolin's performance over the past year has been concerning, with a decline of 29.01%, contrasting sharply with the Sensex's gain of 6.91%. The company is grappling with operating losses and a weak ability to service its debt, reflected in a negative EBIT to interest ratio. Additionally, 39.98% of promoter shares are pledged, adding to the stock's risk profile.