Mukka Proteins Ltd Hits All-Time Low Amidst Prolonged Downtrend

Stock Price and Market Performance Overview

On 7 Jan 2026, Mukka Proteins Ltd recorded its lowest-ever trading price at Rs.23.59. Despite a marginal uptick of 0.13% on the day, the stock remains well below its moving averages, trading lower than its 5-day, 20-day, 50-day, 100-day, and 200-day averages. This indicates sustained downward momentum over multiple time horizons.

Comparatively, the Sensex declined by 0.25% on the same day, while Mukka Proteins marginally outperformed the benchmark in the short term. However, the stock’s longer-term performance paints a more challenging picture. Over the past one month, the stock has fallen by 8.47%, significantly underperforming the Sensex’s 1.00% decline. The three-month decline of 10.97% contrasts sharply with the Sensex’s 3.57% gain, and the one-year return of -38.82% starkly underperforms the Sensex’s 8.51% rise.

Year-to-date, Mukka Proteins has declined by 1.00%, slightly worse than the Sensex’s 0.43% fall. Over three and five years, the stock has shown no appreciable gains, remaining flat, while the Sensex has delivered returns of 41.66% and 76.44% respectively. Over a decade, the Sensex’s 241.44% gain further highlights the stock’s relative underperformance.

Financial Health and Profitability Metrics

Mukka Proteins Ltd’s financial indicators reveal ongoing pressures. The company’s Return on Capital Employed (ROCE) stands at a modest 9.16%, reflecting limited profitability relative to the capital invested. This figure is a key factor in the company’s current Sell rating, which was downgraded from Strong Sell on 14 Nov 2025, as per MarketsMOJO’s assessment.

Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 5.26 times. This elevated leverage ratio indicates a substantial burden on earnings before interest, taxes, depreciation, and amortisation, constraining financial flexibility.

Net sales growth has been subdued, averaging an annual increase of 8.60% over the past five years. While this suggests some expansion, it is insufficient to offset the pressures from profitability and debt levels.

Recent Quarterly Results and Earnings Trends

The company has reported negative results for seven consecutive quarters, underscoring a persistent earnings decline. Profit Before Tax excluding Other Income (PBT LESS OI) for the latest quarter was Rs.3.28 crore, down 67.9% compared to the previous four-quarter average. Similarly, Profit After Tax (PAT) fell by 45.9% to Rs.5.88 crore over the same period.

Interest expenses have reached a peak of Rs.12.82 crore in the most recent quarter, further pressuring net profitability. These figures highlight the challenges Mukka Proteins faces in maintaining earnings amid rising financial costs.

Institutional Investor Activity

Institutional investors have reduced their holdings by 0.6% in the previous quarter, now collectively holding 3.36% of the company’s shares. This decline in institutional participation may reflect cautious sentiment given the company’s financial profile and recent performance trends.

Valuation and Market Perception

Despite the challenges, Mukka Proteins Ltd maintains a relatively attractive valuation with an Enterprise Value to Capital Employed ratio of 1.3, suggesting the stock trades at a discount relative to its peers’ historical averages. However, this valuation has not translated into positive returns, as the stock’s profits have declined by 34% over the past year alongside the 38.82% drop in share price.

Sector and Industry Context

Mukka Proteins operates within the FMCG sector, a space characterised by intense competition and evolving consumer preferences. The company’s Mojo Score of 37.0 and Mojo Grade of Sell reflect its current standing relative to sector peers. The downgrade from Strong Sell to Sell on 14 Nov 2025 indicates a slight improvement in outlook, though the overall assessment remains cautious.

While the company has demonstrated healthy long-term growth in operating profit at an annual rate of 50.86%, this has not translated into sustained shareholder returns or improved financial stability. The disconnect between profit growth and stock performance suggests underlying structural issues affecting market confidence.

Summary of Key Financial Ratios and Trends

Key metrics summarise the company’s current position:

• Return on Capital Employed (ROCE): 9.16%


• Debt to EBITDA Ratio: 5.26 times


• Net Sales Growth (5-year CAGR): 8.60%


• Profit Before Tax (latest quarter): Rs.3.28 crore, down 67.9%


• Profit After Tax (latest quarter): Rs.5.88 crore, down 45.9%


• Interest Expense (latest quarter): Rs.12.82 crore, highest recorded


• Institutional Holding: 3.36%, down 0.6% from previous quarter

Conclusion

Mukka Proteins Ltd’s fall to an all-time low price of Rs.23.59 reflects a prolonged period of subdued financial performance and market underperformance. Despite some positive trends in operating profit growth and valuation metrics, the company faces significant headwinds from profitability constraints, elevated debt levels, and declining institutional interest. The stock’s performance relative to the Sensex and sector benchmarks underscores the challenges it continues to face within the FMCG industry landscape.

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