Majestic Auto Faces Significant Volatility Amid Weak Financial Fundamentals and Market Underperformance

Majestic Auto has experienced significant volatility today, hitting a new 52-week low of Rs. 281.9. The stock opened with a notable gap down, reflecting a loss of 4.87% at the start of trading. Throughout the day, it further declined, reaching an intraday low of Rs. 281.9, marking a 7.53% drop. Over the past two days, Majestic Auto has seen a cumulative decline of 7.3%, underperforming the broader market.
In terms of performance metrics, Majestic Auto has consistently traded below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. The company's one-year performance stands at -7.55%, contrasting with the Sensex's decline of 2.22% during the same period.

Financially, Majestic Auto has reported weak long-term fundamentals, with a -15.22% CAGR growth in operating profits over the last five years. The company's ability to service its debt is also concerning, as indicated by a low EBIT to Interest ratio of 1.82. Additionally, the recent quarterly results showed a significant drop in profit after tax and net sales, further highlighting the challenges faced by the company.