Milkfood Stock Falls to 52-Week Low of Rs.61 Amidst Continued Downtrend

Recent Price Movement and Market Context

On 2 December 2025, Milkfood’s stock price touched an intraday low of Rs.61, representing a 4.81% decline during the trading session. This new 52-week low comes after three consecutive days of losses, with the stock registering a cumulative return of -2.26% over this period. The day’s closing price reflected a 1.69% drop, underperforming the FMCG sector by 1.77%.

Milkfood’s current trading levels are below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish trend. This contrasts with the broader market, where the Sensex opened 316.39 points lower and was trading at 85,138.27, down 0.59%. Notably, the Sensex remains close to its 52-week high of 86,159.02 and is supported by bullish moving averages, with the 50-day average positioned above the 200-day average.

One-Year Performance Comparison

Over the past year, Milkfood’s stock has recorded a return of -41.80%, significantly lagging behind the Sensex, which posted a 6.09% gain during the same period. The stock’s 52-week high was Rs.124, highlighting the extent of the decline from its peak. This underperformance extends beyond the last year, with Milkfood consistently trailing the BSE500 index across the previous three annual periods.

Financial Performance and Profitability Metrics

Milkfood has reported negative results for four consecutive quarters, with the latest quarterly profit after tax (PAT) at Rs. -7.86 crores, reflecting a decline of 973.3% compared to previous periods. Interest expenses for the nine-month period stand at Rs. 9.98 crores, showing a 32.01% increase, which adds pressure on the company’s earnings.

The company’s return on capital employed (ROCE) for the half-year is at a low 2.69%, while the average return on equity (ROE) is 3.20%, indicating limited profitability relative to shareholders’ funds. Additionally, Milkfood’s debt to EBITDA ratio is 7.22 times, signalling a high leverage position and a constrained ability to service debt obligations.

Valuation and Relative Positioning

Despite the challenges, Milkfood’s valuation metrics suggest an attractive enterprise value to capital employed ratio of 1, which is comparatively lower than its peers’ historical averages. This discount in valuation reflects the market’s cautious stance given the company’s recent financial performance and subdued profitability.

Profitability has also been affected over the past year, with profits falling by 184.3%, further underscoring the financial strain faced by the company. The majority shareholding remains with promoters, maintaining control over corporate decisions.

Sector and Industry Context

Milkfood operates within the FMCG sector, which has generally shown resilience and steady growth. However, the company’s stock has not mirrored this trend, as it continues to trade below all major moving averages and lags behind sector performance. The broader FMCG sector has maintained relative stability, making Milkfood’s price movement more notable in contrast.

The Sensex’s current position near its 52-week high and its positive technical indicators further highlight Milkfood’s divergence from the general market trend. This divergence emphasises the specific challenges faced by the company within its industry context.

Summary of Key Metrics

To summarise, Milkfood’s stock has reached Rs.61, its lowest level in the past year, after a series of declines. The stock’s one-year return of -41.80% contrasts with the Sensex’s 6.09% gain. Financial indicators reveal ongoing losses, increased interest costs, and low returns on equity and capital employed. The company’s leverage remains elevated, with a debt to EBITDA ratio exceeding seven times.

Valuation metrics indicate a discount relative to peers, reflecting the market’s cautious assessment. The stock’s performance over the last three years has consistently trailed benchmark indices, underscoring persistent challenges in regaining momentum.

Conclusion

Milkfood’s fall to a 52-week low of Rs.61 marks a significant milestone in its recent price trajectory. The stock’s performance reflects a combination of financial pressures, subdued profitability, and market dynamics that have weighed on investor sentiment. While the broader market and FMCG sector show relative strength, Milkfood’s current position highlights the specific hurdles it faces within this environment.

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