Last Mile Enterprises Faces Stock Volatility Despite Strong Sales and Profit Growth

Last Mile Enterprises, a microcap player in the Non-Banking Financial Company (NBFC) sector, has experienced significant volatility today, hitting a new 52-week low of Rs. 15.52. This marks a continued decline for the stock, which has underperformed its sector by 1.24% and has seen a consecutive fall over the past four days, resulting in a total decline of 5.27% during this period.
The company's performance over the past year has been stark, with a staggering drop of 80.07%, contrasting sharply with the Sensex's decline of just 1.05%. Despite this downturn, Last Mile Enterprises reported a remarkable growth in net sales of 109.62% and a substantial increase in profit after tax (PAT) of 286.20% over the last six months. The company has also posted positive results for the last three consecutive quarters.

However, the stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. With an ROE of 4.1 and a price-to-book ratio of 1.5, the valuation appears expensive relative to its fundamentals. The lack of domestic mutual fund investment further highlights concerns regarding the company's long-term strength.