Last Mile Enterprises Faces Stock Volatility Amid Strong Sales Growth and Concerns

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. 15.89. This decline comes as the stock underperformed its sector by 1.27%, continuing a troubling trend where it has consistently traded below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.
Over the past year, Last Mile Enterprises has faced a staggering 78.27% drop in stock value, contrasting sharply with the Sensex's modest decline of 0.55%. Despite these challenges, the company reported impressive growth metrics, including a 109.62% increase in net sales and a remarkable 286.20% rise in profit after tax over the last six months. The latest quarterly results indicate a net sales figure of Rs. 274.35 crore, reflecting a 354.1% growth compared to the previous four-quarter average.

While the company has shown positive results for three consecutive quarters, its operating losses and weak long-term fundamental strength raise concerns. Additionally, the absence of domestic mutual fund investment suggests a cautious outlook from institutional investors.