Mukka Proteins Ltd Hits All-Time Low Amidst Continued Downtrend

Recent Price Movements and Market Context

On 19 Jan 2026, Mukka Proteins Ltd recorded its lowest-ever share price at Rs.21.95, continuing a downward trajectory that has spanned several months. The stock has underperformed its sector by 1.01% on the day, closing with a decline of 0.77%, compared to the Sensex’s fall of 0.42%. This marks the third consecutive day of losses, with a cumulative return of -1.3% over this period.

The stock is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. Over the past month, Mukka Proteins has declined by 9.13%, significantly underperforming the Sensex’s 2.01% drop. The three-month performance is even more pronounced, with a fall of 11.76% against the Sensex’s marginal 0.87% decline.

Long-Term Performance and Comparative Analysis

Over the last year, the stock has delivered a negative return of 41.74%, in stark contrast to the Sensex’s positive 8.62% gain. Year-to-date, Mukka Proteins has fallen 8.79%, while the broader market has declined by 2.34%. The company’s three-year and five-year returns stand at 0.00%, indicating no appreciable growth, whereas the Sensex has surged by 36.75% and 68.47% respectively over the same periods. The ten-year performance similarly shows no gains for Mukka Proteins, compared to the Sensex’s robust 239.97% increase.

Financial Metrics and Profitability Concerns

Mukka Proteins’ financial indicators reveal ongoing pressures. The company’s Return on Capital Employed (ROCE) averages at 9.16%, reflecting limited profitability relative to the capital invested. This figure is considered low within the FMCG sector, where efficient capital utilisation is critical for sustainable growth.

Debt servicing capacity remains a concern, with a Debt to EBITDA ratio of 5.26 times, indicating a relatively high leverage position. Interest expenses have reached a quarterly high of Rs.12.82 crores, further straining financial resources. Profit Before Tax excluding other income (PBT less OI) for the latest quarter stood at Rs.3.28 crores, a sharp decline of 67.9% compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) for the quarter was Rs.5.88 crores, down 45.9% from the prior four-quarter average.

Declining Institutional Participation

Institutional investors have reduced their holdings by 0.6% in the most recent quarter, now collectively owning 3.36% of the company’s shares. This reduction in institutional stake may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.

Growth Trends and Valuation Metrics

Despite the subdued share price performance, Mukka Proteins has demonstrated healthy long-term growth in operating profit, which has increased at an annual rate of 50.86%. This contrasts with the more modest net sales growth of 8.60% per annum over the last five years, suggesting some improvement in operational efficiency or cost management.

The company’s valuation metrics indicate a very attractive position, with an Enterprise Value to Capital Employed ratio of 1.2, placing it at a discount relative to its peers’ historical averages. However, this valuation advantage has not translated into share price appreciation, as profits have declined by 34% over the past year.

Recent Quarterly Financial Performance

Mukka Proteins has reported negative results for seven consecutive quarters, underscoring the persistent difficulties faced by the company. The latest quarter’s figures show a marked deterioration in profitability, with PBT less other income falling by nearly 68% and PAT declining by 46% compared to the previous four-quarter average. Interest costs have escalated, reaching Rs.12.82 crores, the highest recorded in recent quarters, further impacting net earnings.

Sector and Market Comparison

Within the FMCG sector, Mukka Proteins’ performance has been notably weaker than many of its peers. The stock’s consistent underperformance relative to the Sensex and BSE500 indices over multiple time frames highlights the challenges in maintaining competitive positioning and investor confidence.

Summary of Key Financial and Market Indicators

Mukka Proteins Ltd currently holds a Mojo Score of 31.0 and a Mojo Grade of Sell, an improvement from its previous Strong Sell rating as of 14 Nov 2025. The company’s market capitalisation grade stands at 4, reflecting its relative size and liquidity within the FMCG sector.

The stock’s recent performance metrics reveal a consistent pattern of underperformance against both sector and broader market indices. The combination of low ROCE, high leverage, declining profitability, and reduced institutional interest paints a comprehensive picture of the company’s current standing in the market.

Conclusion

Mukka Proteins Ltd’s fall to an all-time low of Rs.21.95 underscores a period of sustained challenges for the company. While certain financial metrics such as operating profit growth and valuation ratios offer some positive context, the overall trend remains subdued. The stock’s performance relative to key indices and sector peers highlights the difficulties faced in reversing the downtrend. The company’s financial indicators, including profitability and debt servicing capacity, continue to reflect a cautious outlook for stakeholders.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →