Mukka Proteins Faces Financial Struggles Amid Sector Volatility and Declining Sales

Mukka Proteins, a microcap player in the FMCG sector, has experienced significant volatility, hitting a new 52-week low of Rs. 28 today. This decline marks a continued trend, as the stock has fallen for two consecutive days, resulting in a total drop of 2.43% during this period. Despite this downturn, Mukka Proteins outperformed its sector by 2.97% today, although the broader aquaculture industry has seen a decline of 5.71%.
Over the past year, Mukka Proteins has reported a staggering loss of 45.18%, contrasting sharply with the Sensex's modest decline of 0.94%. The company's financial health raises concerns, highlighted by a high Debt to EBITDA ratio of 4.36 times, indicating challenges in servicing its debt. Additionally, net sales have decreased by 24.57% over the last nine months, while profit after tax has fallen by 36.38%.

Institutional investor participation has also waned, with a 0.65% reduction in stakes over the last quarter, leaving them with a collective holding of 3.96%. Mukka Proteins' long-term growth prospects appear limited, as evidenced by negative results over the last five quarters and a return on capital employed averaging 9.48%.