During the latest quarter, Kimia Biosciences reported an operating cash flow for the year at its highest level of ₹21.31 crores, signalling a solid cash generation capability. Additionally, the debtors turnover ratio for the half-year period reached 4.47 times, marking a peak in the company’s efficiency in managing receivables. These factors contributed positively to the recent adjustment in the financial trend parameter, which improved from -16 to -2 over the past three months.
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However, the company’s profitability metrics present a contrasting picture. The profit after tax (PAT) for the latest six months stood at ₹1.62 crores, reflecting a contraction of 46.89% compared to previous periods. The quarterly PBDIT was recorded at ₹2.52 crores, the lowest in recent times, while the operating profit to net sales ratio for the quarter declined to 7.41%, also marking a low point. These figures indicate margin pressures and challenges in translating revenue into operating profits.
Kimia Biosciences’ stock price closed at ₹34.00, showing a day change of 2.47%, with intraday highs and lows of ₹34.90 and ₹32.02 respectively. The stock’s 52-week range remains broad, with a high of ₹86.85 and a low of ₹29.11, underscoring significant volatility over the past year.
In terms of market returns, Kimia Biosciences has underperformed the broader Sensex index across multiple time frames. Year-to-date, the stock has recorded a negative return of 25.52%, while the Sensex has gained 8.36%. Over one year, the stock’s return was -27.66% against the Sensex’s 9.48%. Longer-term comparisons over three and five years also show the stock lagging behind the Sensex, which has delivered returns of 37.31% and 91.65% respectively.
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Overall, Kimia Biosciences’ recent quarterly performance reflects a stabilisation in its financial trend parameter, supported by strong operating cash flow and receivables management. Nonetheless, the contraction in profitability and margin ratios highlights ongoing operational challenges. Investors analysing this Pharmaceuticals & Biotechnology micro-cap should consider these mixed signals in the context of broader market performance and sector dynamics.
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