Milkfood Ltd Stock Falls to 52-Week Low of Rs.58 Amid Continued Weakness

Stock Performance and Market Context

On the trading day, Milkfood Ltd’s stock price fell by 4.10%, underperforming the FMCG sector by 5.11%. The stock touched an intraday low of Rs.58, representing its lowest level in the past year. This decline extends a recent negative trend, with the stock losing 5.58% over the last two trading sessions. The share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

In comparison, the broader market, represented by the Sensex, experienced a modest decline of 0.41%, closing at 84,695.54 points. The Sensex remains near its 52-week high of 86,159.02, just 1.73% away, and trades below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating a mixed technical backdrop for the market overall.

Long-Term Price Trends and Relative Performance

Over the past year, Milkfood Ltd’s stock has delivered a negative return of 47.81%, a stark contrast to the Sensex’s positive 7.62% gain during the same period. The stock’s 52-week high was Rs.116.45, underscoring the magnitude of the recent decline. This persistent underperformance extends beyond the last year, with the company lagging behind the BSE500 index in each of the previous three annual periods.

Financial Metrics and Profitability Concerns

Milkfood Ltd’s financial indicators reflect ongoing difficulties. The company has reported negative results for four consecutive quarters, with the latest quarterly profit after tax (PAT) at a loss of Rs.7.86 crores, a sharp decline of 973.3% compared to previous periods. Interest expenses have increased by 51.47% over the last six months, reaching Rs.6.71 crores, further pressuring the company’s earnings.

Return on Capital Employed (ROCE) for the half-year stands at a low 2.69%, while the average Return on Equity (ROE) is 3.20%, indicating limited profitability relative to shareholders’ funds. The company’s debt servicing capacity is constrained, with a high Debt to EBITDA ratio of 7.22 times, highlighting elevated leverage and financial risk.

Valuation and Market Perception

Despite the challenges, Milkfood Ltd’s valuation metrics suggest the stock is trading at a discount relative to its peers. The Enterprise Value to Capital Employed ratio is 0.9, which may be considered attractive in valuation terms. However, this valuation reflects the market’s cautious stance given the company’s weak fundamentals and consistent underperformance.

Profitability has deteriorated significantly, with profits falling by 184.3% over the past year, reinforcing the downward pressure on the stock price. The company’s market capitalisation grade is rated 4, and its overall Mojo Score stands at 14.0, with a Strong Sell grade assigned on 4 Nov 2024, upgraded from a previous Sell rating, indicating a continued negative outlook from the rating agency.

Shareholding and Sectoral Position

Milkfood Ltd operates within the FMCG sector, a highly competitive and dynamic industry. The majority shareholding is held by promoters, which typically provides some stability in ownership structure. However, the company’s financial and market performance has not aligned favourably with sector trends, as it continues to lag behind peers and benchmark indices.

The stock’s recent performance and valuation reflect a combination of weak profitability, elevated debt levels, and sustained negative earnings growth, factors that have contributed to the stock’s decline to its current 52-week low.

Summary of Key Metrics

To summarise, Milkfood Ltd’s key financial and market metrics as of 29 Dec 2025 are:

• New 52-week low price: Rs.58


• One-year stock return: -47.81%


• Sensex one-year return: +7.62%


• Debt to EBITDA ratio: 7.22 times


• Return on Equity (average): 3.20%


• Return on Capital Employed (half-year): 2.69%


• Interest expense growth (6 months): +51.47%


• Quarterly PAT decline: -973.3%


• Mojo Score: 14.0 (Strong Sell)


• Market Cap Grade: 4

These figures illustrate the challenges faced by Milkfood Ltd in maintaining profitability and market confidence, reflected in the stock’s recent price movements and valuation.

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