Kimia Biosciences Faces Financial Struggles Amid Declining Sales and High Debt Levels

Kimia Biosciences, a microcap player in the Pharmaceuticals & Biotechnology sector, has experienced significant activity today, hitting a new 52-week low of Rs. 34.25. This decline marks a 4.83% drop from its intraday high and contributes to a two-day losing streak, during which the stock has fallen by 6.76%. Notably, Kimia's performance has underperformed its sector by 4.21%. The company's financial metrics reveal a challenging landscape, with net sales for the latest quarter declining by 20.7% compared to the previous four-quarter average. Additionally, the profit after tax has seen a substantial decrease of 75%. The operating profit to interest ratio stands at a low 1.45 times, indicating potential difficulties in covering interest obligations. In terms of long-term fundamentals, Kimia Biosciences faces high debt levels, reflected in a debt-to-equity ratio averaging 12.14 times. Over the past year, the stock has generated a return of -34.72%, contrasting sharply with the Sensex, which has only declined by 0.73% during the same period. The stock is currently trading below its moving averages, suggesting a challenging market position.