Mukka Proteins Ltd Hits All-Time Low Amidst Prolonged Downtrend

Recent Price and Performance Overview

On 20 Jan 2026, Mukka Proteins Ltd recorded a closing price of ₹21.75, the lowest level ever observed for the stock. This represents a decline of 0.86% on the day, underperforming the Sensex which fell by 0.41%. Over the past week, the stock has lost 2.11%, compared to a 0.87% drop in the Sensex. The downward trend is more pronounced over longer periods, with a one-month return of -9.63% versus the Sensex’s -2.39%, and a three-month return of -12.57% against the Sensex’s -1.73%.

Year-to-date, Mukka Proteins has declined by 9.29%, significantly underperforming the Sensex’s 2.72% fall. The stock has been on a consecutive four-day losing streak, shedding 2.07% during this period. It is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

Long-Term Underperformance

The stock’s long-term performance remains subdued. Over the past year, Mukka Proteins has delivered a negative return of 42.04%, in stark contrast to the Sensex’s positive 7.56% gain. Over three and five years, the stock has shown no appreciable growth, registering 0.00% returns, while the Sensex has surged by 36.75% and 66.50% respectively. Over a decade, the divergence is even more pronounced, with the Sensex appreciating by 244.54% compared to no growth for Mukka Proteins.

Financial Metrics and Profitability

The company’s financial indicators highlight ongoing pressures. Mukka Proteins’ average Return on Capital Employed (ROCE) stands at 9.16%, indicating limited profitability relative to the capital invested. This figure is considered low within the FMCG sector, where efficient capital utilisation is critical. The company’s ability to service debt is constrained, with a high Debt to EBITDA ratio of 5.26 times, reflecting elevated leverage and interest obligations.

Profitability has also deteriorated in recent quarters. The Profit Before Tax excluding other income (PBT less OI) for the latest quarter was ₹3.28 crores, down 67.9% compared to the average of the previous four quarters. Net Profit After Tax (PAT) for the quarter stood at ₹5.88 crores, a decline of 45.9% relative to the prior four-quarter average. Interest expenses have reached a peak of ₹12.82 crores, further pressuring earnings.

Institutional Investor Sentiment

Institutional participation has waned, with a reduction of 0.6% in their stake over the previous quarter. Currently, institutional investors hold 3.36% of the company’s shares. This decline in institutional ownership may reflect concerns regarding the company’s fundamentals and growth prospects.

Growth and Valuation Considerations

Despite the challenges, Mukka Proteins has demonstrated healthy long-term growth in operating profit, expanding at an annual rate of 50.86%. This contrasts with its more modest net sales growth of 8.60% per annum over the last five years. The company’s valuation metrics suggest a very attractive price point, with an Enterprise Value to Capital Employed ratio of 1.2, indicating the stock is trading at a discount relative to its peers’ historical valuations.

However, the decline in profits remains a concern, with a 34% fall over the past year. This contraction in earnings, coupled with the stock’s significant price depreciation, underscores the severity of the current situation.

Market and Sector Context

Mukka Proteins operates within the FMCG sector, which has generally exhibited resilience and growth. The stock’s underperformance relative to the sector by 0.79% on the latest trading day highlights its divergence from broader sector trends. The company’s Mojo Score stands at 31.0, with a Mojo Grade of Sell, downgraded from Strong Sell on 14 Nov 2025. Its Market Cap Grade is 4, reflecting its micro-cap status within the FMCG industry.

Summary of Key Financial and Market Indicators

Mukka Proteins Ltd’s recent performance is characterised by a sustained decline in share price, reaching an all-time low of ₹21.75. The stock has consistently underperformed the Sensex and its sector peers across multiple time frames, including one day, one week, one month, three months, and one year. The company’s financial health is marked by low capital efficiency, high leverage, and declining profitability, with seven consecutive quarters of negative results.

Institutional investor interest has diminished, reflecting cautious sentiment. While operating profit growth remains robust, net sales growth and earnings have contracted, contributing to the stock’s depressed valuation. The company’s Mojo Grade of Sell and a Mojo Score of 31.0 further illustrate the current market assessment.

Overall, Mukka Proteins Ltd’s stock performance and financial metrics indicate a challenging environment, with the recent all-time low underscoring the severity of its current position within the FMCG sector.

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