Mukka Proteins Ltd Falls to 52-Week Low of Rs.23.71 Amidst Continued Downtrend

Stock Performance and Market Context

On the day the new low was recorded, Mukka Proteins Ltd’s stock fell by 0.08%, underperforming the FMCG sector by 1.28%. This decline extends a three-day losing streak during which the stock has delivered a cumulative return of -1.16%. The share price now trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

In contrast, the broader market has shown relative resilience. The Sensex opened 108.48 points lower but was trading at 85,189.58 by midday, down 0.29%. Notably, the Sensex remains close to its 52-week high of 86,159.02, just 1.14% away, and is supported by bullish moving averages with the 50-day DMA above the 200-day DMA.

Over the past year, Mukka Proteins Ltd’s stock has delivered a negative return of -37.48%, starkly underperforming the Sensex’s positive 9.27% gain. The stock’s 52-week high was Rs.41.08, highlighting the extent of the recent decline.

Financial Metrics and Profitability Concerns

The company’s financial indicators reveal challenges that have contributed to the stock’s decline. Mukka Proteins Ltd’s average Return on Capital Employed (ROCE) stands at a modest 9.16%, indicating limited profitability relative to the capital invested. This figure is a key factor in the company’s current Mojo Grade of Sell, which was downgraded from Strong Sell on 14 Nov 2025, reflecting a reassessment of its financial health and outlook.

Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 5.26 times. This elevated leverage ratio suggests the company faces significant interest obligations relative to its earnings before interest, tax, depreciation, and amortisation. Indeed, interest expenses reached a quarterly high of Rs.12.82 crores, further pressuring profitability.

Net sales growth has been subdued, averaging an annual rate of 8.60% over the last five years, which is modest for the FMCG sector. Additionally, the company has reported negative results for seven consecutive quarters. The latest quarterly Profit Before Tax Less Other Income (PBT LESS OI) was Rs.3.28 crores, down 67.9% compared to the previous four-quarter average. Similarly, quarterly Profit After Tax (PAT) declined by 45.9% to Rs.5.88 crores over the same period.

Institutional Participation and Market Sentiment

Institutional investors have reduced their holdings in Mukka Proteins Ltd by 0.6% over the previous quarter, now collectively holding 3.36% of the company’s shares. This decline in institutional participation may reflect a cautious stance given the company’s recent financial performance and valuation metrics. Institutional investors typically possess greater analytical resources, and their reduced stake can be indicative of tempered confidence in the stock’s near-term prospects.

The stock’s underperformance extends beyond the last year. It has lagged the BSE500 index over the past three years, one year, and three months, underscoring a pattern of below-par returns relative to the broader market.

Valuation and Growth Considerations

Despite the challenges, Mukka Proteins Ltd exhibits some positive attributes. Operating profit has grown at an annual rate of 50.86%, signalling healthy expansion in core earnings. The company’s valuation metrics also suggest an attractive entry point relative to its peers. With a ROCE of 9.2% and an Enterprise Value to Capital Employed ratio of 1.3, the stock is trading at a discount compared to historical averages within the FMCG sector.

However, this valuation discount accompanies a decline in profitability, with profits falling by 34% over the past year. The juxtaposition of growth in operating profit and falling net profits highlights margin pressures and elevated interest costs impacting the bottom line.

Summary of Key Financial and Market Indicators

Mukka Proteins Ltd’s current Mojo Score is 37.0, with a Mojo Grade of Sell, reflecting a downgrade from Strong Sell as of 14 Nov 2025. The company’s market capitalisation grade stands at 4, indicating a relatively modest market cap within its sector. The stock’s recent price action, combined with fundamental metrics such as low ROCE, high leverage, and declining profitability, have contributed to its subdued market performance.

While the broader FMCG sector and Sensex have maintained positive momentum, Mukka Proteins Ltd’s share price continues to reflect the impact of its financial challenges and investor sentiment. The stock’s fall to Rs.23.71 represents a significant technical and psychological level, marking its lowest point in the past 52 weeks and all-time trading history.

Conclusion

The decline of Mukka Proteins Ltd to its 52-week low is the result of a combination of factors including subdued profitability, elevated debt levels, and consistent quarterly losses. Despite some growth in operating profit and a valuation discount relative to peers, the company’s financial metrics and market performance have weighed on its share price. The stock’s underperformance relative to the Sensex and FMCG sector highlights the challenges faced by the company in maintaining investor confidence and market valuation.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →