Recent Price Movement and Market Context
On 9 December 2025, Modern Dairies' share price touched Rs.36.51, the lowest level recorded in the past year. This follows a two-day consecutive decline, during which the stock's returns contracted by 3.97%. The day’s performance showed a further dip of 0.56%, underperforming the FMCG sector by 0.69%. The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained bearish pressure.
In contrast, the broader market index, Sensex, opened lower by 359.82 points and was trading at 84,575.02, down 0.62% on the day. Despite this, Sensex remains close to its 52-week high of 86,159.02, just 1.87% away, and is positioned above its 50-day moving average, which itself is above the 200-day moving average, indicating a generally bullish trend in the wider market.
Long-Term Performance and Valuation Metrics
Over the last year, Modern Dairies has recorded a negative return of 43.94%, significantly lagging behind the Sensex, which posted a positive return of 3.81% during the same period. The stock’s 52-week high was Rs.73.99, highlighting the extent of the decline to the current low.
Financially, the company has experienced a compound annual growth rate (CAGR) of net sales at -14.86% over the past five years, indicating a contraction in revenue generation. The average return on capital employed (ROCE) stands at 7.41%, suggesting modest profitability relative to the capital invested. The latest six-month profit after tax (PAT) was Rs.3.34 crore, reflecting a decline of 53.48% compared to the previous period.
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Valuation and Peer Comparison
Modern Dairies' ROCE of 14.8% and an enterprise value to capital employed ratio of 2.1 suggest a fair valuation relative to its capital base. However, the stock is trading at a premium compared to the average historical valuations of its peers within the FMCG sector. Despite the negative share price performance over the past year, the company’s profits have shown a rise of 28.4%, resulting in a price/earnings to growth (PEG) ratio of 0.3.
The majority shareholding remains with the promoters, indicating concentrated ownership.
Sector and Market Dynamics
The FMCG sector, in which Modern Dairies operates, has faced mixed conditions recently. While the broader market indices maintain a generally positive trajectory, individual stocks such as Modern Dairies have experienced downward pressure. The stock’s underperformance relative to the sector and market benchmarks highlights the challenges faced in maintaining investor confidence and market valuation.
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Summary of Key Financial Indicators
Modern Dairies’ financial indicators over recent periods reflect subdued growth and profitability. The negative CAGR in net sales over five years and the decline in PAT over the latest six months underscore the pressures on the company’s earnings capacity. The ROCE figures indicate limited returns on the capital employed, while the premium valuation relative to peers suggests market expectations remain cautious.
The stock’s trading below all major moving averages further illustrates the prevailing bearish sentiment among market participants.
Conclusion
The fall of Modern Dairies to a 52-week low of Rs.36.51 marks a notable point in its share price trajectory, reflecting a combination of company-specific financial trends and broader market dynamics. While the wider market maintains a generally positive stance, the stock’s performance highlights the challenges faced within its sector and the company’s current valuation context.
Investors and market observers will continue to monitor the stock’s movement in relation to sector trends and financial results as the company navigates its current phase.
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