Stock Price Movement and Market Context
On the day the new low was recorded, Mukka Proteins Ltd’s stock fell by 2.02%, underperforming the FMCG sector by 0.48%. This decline extended a losing streak spanning six consecutive trading sessions, during which the stock has delivered a cumulative negative return of 5.44%. The current price of Rs.22.7 stands considerably below the stock’s 52-week high of Rs.41.08, representing a depreciation of approximately 44.7% from that peak.
Technical indicators further underscore the bearish momentum, with the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained weakness in price action.
In contrast, the broader market has shown relative resilience. The Sensex opened lower at 84,022.09 points, down 0.19%, and was trading marginally lower at 84,174.80 points during the session, just 2.36% shy of its 52-week high of 86,159.02. Mid-cap stocks led the market gains with the BSE Mid Cap index rising by 0.07%, highlighting a divergence between Mukka Proteins and broader market trends.
Financial Performance and Profitability Concerns
Mukka Proteins Ltd’s financial results have been under pressure, with the company reporting negative earnings for seven consecutive quarters. The latest quarterly Profit Before Tax excluding other income (PBT less OI) stood at Rs.3.28 crore, a sharp decline of 67.9% compared to the average of the previous four quarters. Similarly, the Profit After Tax (PAT) for the quarter was Rs.5.88 crore, down 45.9% from the prior four-quarter average.
Interest expenses have escalated, reaching a quarterly high of Rs.12.82 crore, which has further strained profitability. The company’s ability to service its debt remains a concern, with a high Debt to EBITDA ratio of 5.26 times, indicating significant leverage relative to earnings before interest, tax, depreciation, and amortisation.
Return on Capital Employed (ROCE) has been modest at 9.16%, reflecting limited efficiency in generating profits from the capital invested. This figure is indicative of subdued management effectiveness in capital utilisation, which has contributed to the stock’s subdued performance.
Only 1% make it here. This Large Cap from the Gems, Jewellery And Watches sector passed our rigorous filters with flying colors. Be among the first few to spot this gem!
- - Highest rated stock selection
- - Multi-parameter screening cleared
- - Large Cap quality pick
Growth Trends and Sales Performance
Over the past five years, Mukka Proteins has recorded a net sales compound annual growth rate (CAGR) of 8.60%, which is relatively modest within the FMCG sector. While operating profit has shown a more robust annual growth rate of 50.86%, this has not translated into consistent bottom-line improvement due to rising interest costs and other expenses.
The stock’s one-year total return has been negative 39.20%, significantly lagging the Sensex’s positive 8.39% return over the same period. This underperformance extends to longer time frames as well, with the stock trailing the BSE500 index over the last three years, one year, and three months.
Institutional Holding and Market Sentiment
Institutional investors have reduced their stake in Mukka Proteins by 0.6% in the previous quarter, now collectively holding 3.36% of the company’s shares. This decline in institutional participation may reflect concerns about the company’s financial health and growth prospects, given these investors’ typically rigorous fundamental analysis capabilities.
Despite these challenges, the stock’s valuation metrics suggest a degree of market discounting. The company’s Enterprise Value to Capital Employed ratio stands at 1.3, which is considered very attractive relative to peers’ historical averages. This valuation reflects the market’s cautious stance amid the company’s recent financial performance.
Mukka Proteins Ltd or something better? Our SwitchER feature analyzes this micro-cap FMCG stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Summary of Key Metrics and Ratings
Mukka Proteins Ltd currently holds a Mojo Score of 31.0 and a Mojo Grade of Sell, which was upgraded from Strong Sell on 14 Nov 2025. The company’s market capitalisation grade is 4, reflecting its micro-cap status within the FMCG sector. The downgrade in rating earlier this year was influenced by the company’s declining profitability, high leverage, and subdued growth metrics.
While the company has demonstrated some long-term growth in operating profit, the combination of high interest costs, declining net profits, and reduced institutional interest has weighed heavily on the stock price. The persistent decline to a new 52-week low underscores the challenges faced by Mukka Proteins in regaining investor confidence and market momentum.
Broader Market and Sector Comparison
In comparison to the FMCG sector and broader market indices, Mukka Proteins’ performance has been notably weaker. The Sensex’s proximity to its 52-week high and the mid-cap segment’s modest gains contrast with the stock’s sustained downtrend. This divergence highlights the company-specific factors influencing Mukka Proteins’ valuation and share price trajectory.
Overall, the stock’s current position at Rs.22.7 represents a significant valuation point, reflecting the cumulative impact of financial pressures and market sentiment over the past year.
Unlock special upgrade rates for a limited period. Start Saving Now →
