Recent Price Movement and Market Context
The stock price of Kopran has been under pressure, falling by 1.71% on the day it hit the new low. This decline follows a two-day losing streak during which the stock returned -5.52%. Kopran’s performance today also lagged behind its sector, underperforming by 1.68%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained weakness in price momentum.
In contrast, the broader market has shown resilience. The Sensex opened 88.12 points higher and is trading at 85,455.79, up 0.26% on the day. It remains close to its 52-week high of 85,801.70, just 0.4% away. The Sensex has been on a three-week consecutive rise, gaining 2.69% over this period, supported by strong performances from mega-cap stocks. The index is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a bullish trend overall.
Long-Term Performance and Financial Indicators
Over the past year, Kopran’s stock has generated a return of -42.35%, a stark contrast to the Sensex’s 8.01% gain during the same period. The stock’s 52-week high was Rs.236.1, highlighting the extent of the decline to the current low. This underperformance extends beyond the last year, with Kopran lagging behind the BSE500 index over the last three years, one year, and three months.
Financially, Kopran has faced challenges in sustaining growth. Operating profit has shown a negative compound annual growth rate of -11.79% over the last five years. The company reported a 22.2% fall in net sales in its September 2025 quarter, continuing a trend of negative quarterly results that has persisted for five consecutive quarters. The September 2024 quarter also recorded negative results following four prior quarters of similar performance.
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Profitability and Capital Efficiency Concerns
Kopran’s profitability metrics reflect ongoing difficulties. The company’s quarterly profit after tax (PAT) stood at a loss of Rs.9.92 crore, representing a decline of 234.4%. Return on Capital Employed (ROCE) for the half-year period is reported at 5.38%, one of the lowest levels observed. Additionally, the operating profit to interest coverage ratio for the quarter is at -2.53 times, indicating that operating profits are insufficient to cover interest expenses.
Despite these challenges, Kopran maintains a relatively low average debt-to-equity ratio of 0.23 times, suggesting limited leverage. The company’s valuation metrics show an enterprise value to capital employed ratio of 1.2, which is considered attractive relative to peers. However, the stock trades at a discount compared to the historical average valuations of its sector counterparts.
Profitability has also been affected over the past year, with profits falling by 66.7%, further compounding the stock’s negative returns.
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Shareholding and Market Interest
In terms of shareholding, domestic mutual funds hold a minimal stake in Kopran, accounting for only 0.01% of the company. Given that domestic mutual funds typically conduct detailed research on companies, this small holding may reflect a cautious stance towards the stock’s current valuation or business outlook.
The stock’s underperformance relative to broader market indices and sector peers, combined with subdued institutional interest, underscores the challenges faced by Kopran in regaining investor confidence.
Summary of Key Metrics
To summarise, Kopran’s stock has reached Rs.126.6, its lowest level in the past 52 weeks, following a sustained period of price decline and financial underperformance. The company’s operating profit and net sales have shown contraction, with consecutive quarters of negative results. Profitability ratios remain subdued, and the stock trades below all major moving averages. Meanwhile, the broader market and sector indices continue to exhibit strength, highlighting the divergence in performance.
While Kopran’s low debt levels and valuation metrics may be noted, the prevailing financial results and market sentiment have contributed to the stock’s recent lows.
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