Recent Price Movement and Market Context
The stock closed just 0.36% above its 52-week low of Rs 88.19, signalling a continuation of the downward trajectory observed over recent sessions. Over the last two trading days, Kokuyo Camlin has recorded a cumulative return of -1.66%, underlining the persistent selling pressure. Despite this, the stock marginally outperformed its sector by 0.77% on the latest trading day, though it remains below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages.
In comparison, the broader market index, Nifty, closed at 25,815.55, down by a negligible 0.01% or 3 points. Nifty itself is on a three-week consecutive decline, having lost 1.48% over this period, and is trading below its 50-day moving average, though the 50DMA remains above the 200DMA. Mid-cap stocks have shown relative strength, with the Nifty Midcap 100 gaining 0.34% on the day.
Long-Term Performance and Valuation Metrics
Over the past year, Kokuyo Camlin’s stock has recorded a return of -35.46%, a stark contrast to the Sensex’s 5.36% gain during the same period. The stock’s 52-week high stands at Rs 140.88, highlighting the extent of the decline from its peak. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.
From a valuation perspective, Kokuyo Camlin trades at a price-to-book ratio of 2.8, which is lower than the historical averages of its peers, suggesting a discount in market valuation. The company’s return on equity (ROE) is recorded at 5.6%, indicating moderate profitability relative to shareholder equity.
This week's revealed pick, a Large Cap from Public Banks with TARGET PRICE, is already showing movement! Get the complete analysis before it's too late.
- - Target price included
- - Early movement detected
- - Complete analysis ready
Financial Performance and Profitability Trends
Despite the subdued stock price, Kokuyo Camlin reported notable quarterly profit growth in its recent results. The profit before tax excluding other income (PBT LESS OI) for the quarter stood at Rs 10.38 crore, reflecting a substantial increase compared to the previous four-quarter average. Similarly, the profit after tax (PAT) for the quarter was Rs 7.86 crore, showing a significant rise relative to prior quarterly averages.
However, over the past year, the company’s profits have declined by 16%, indicating some pressure on earnings despite the quarterly improvements. The company maintains a low average debt-to-equity ratio of 0.09 times, suggesting a conservative capital structure with limited leverage.
Cash and cash equivalents at the half-year mark reached Rs 233.50 crore, the highest recorded level, which may provide some liquidity cushion amid the current market conditions.
Market Participation and Shareholding Patterns
Domestic mutual funds hold a negligible stake in Kokuyo Camlin, with reported ownership at 0%. This limited participation from institutional investors capable of conducting detailed research may reflect a cautious stance towards the stock’s current valuation and business outlook.
The company’s sales have grown at an annual rate of 10.42% over the last five years, a moderate pace that has not translated into commensurate stock price appreciation. This growth rate, combined with the stock’s performance metrics, contributes to the current market assessment.
Considering Kokuyo Camlin ? Wait! SwitchER has found potentially better options in Miscellaneous and beyond. Compare this micro-cap with top-rated alternatives now!
- - Better options discovered
- - Miscellaneous + beyond scope
- - Top-rated alternatives ready
Technical Indicators and Moving Averages
Kokuyo Camlin’s share price is trading below all major moving averages, including the short-term 5-day and 20-day averages as well as the longer-term 50-day, 100-day, and 200-day averages. This positioning indicates sustained downward momentum over multiple time frames. The stock’s proximity to its 52-week low further emphasises the prevailing bearish trend.
In contrast, the Nifty index, while also experiencing recent declines, remains above its 200-day moving average, with the 50-day moving average positioned above the 200-day, suggesting a more mixed technical picture for the broader market.
Summary of Key Metrics
Kokuyo Camlin’s market capitalisation is graded at a modest level, reflecting its micro-cap status within the miscellaneous sector. The stock’s recent day change was a decline of 0.54%, continuing the trend of subdued price action. The company’s sales growth over five years at 10.42% annually contrasts with the stock’s negative returns over the past year and longer periods.
Profitability metrics show a mixed picture, with recent quarterly profit growth contrasting with a year-on-year decline in overall profits. The company’s low leverage and strong cash position provide some financial stability amid the challenging market environment.
Conclusion
Kokuyo Camlin’s stock reaching a 52-week low at Rs 88.19 highlights the challenges faced by the company in terms of market valuation and price momentum. The stock’s performance over the past year and longer periods has lagged behind key benchmarks such as the Sensex and BSE500. While recent quarterly profit figures show improvement, the overall trend in earnings and stock price remains subdued. The limited institutional ownership and trading below all major moving averages further illustrate the cautious market stance towards the stock at present.
Only Rs. 14,999 - Get MojoOne + Stock of the Week for 1 Year PLUS 18 Months FREE! Start Saving Now →
