Stock Price Movement and Market Context
On the day in question, Mukka Proteins Ltd’s stock price fell by 1.94%, closing at Rs.22, which represents both a new 52-week and all-time low. This decline extended a losing streak spanning seven consecutive trading sessions, during which the stock has depreciated by 7.72%. The stock’s performance notably lagged behind the FMCG sector, underperforming by 3.05% on the same day.
Technical indicators reveal that the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum. This contrasts with the broader market, where the Sensex opened lower at 83,435.31 points, down 0.17%, but was trading near its 52-week high of 86,159.02, just 3.09% away.
Over the past year, Mukka Proteins Ltd’s stock has delivered a negative return of 40.59%, significantly underperforming the Sensex, which posted an 8.01% gain during the same period. The stock’s 52-week high was Rs.41.08, underscoring the extent of the recent decline.
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Financial Performance and Profitability Metrics
Mukka Proteins Ltd’s financial indicators highlight several areas of concern. The company’s average Return on Capital Employed (ROCE) stands at 9.16%, a figure that suggests limited profitability relative to the capital invested. This low ROCE is a key factor contributing to the stock’s current rating of ‘Sell’ with a Mojo Score of 31.0, an improvement from a previous ‘Strong Sell’ grade as of 14 Nov 2025.
Debt servicing capacity remains constrained, with a high Debt to EBITDA ratio of 5.26 times, indicating significant leverage relative to earnings before interest, taxes, depreciation, and amortisation. Interest expenses have reached a quarterly high of Rs.12.82 crores, further pressuring profitability.
Net sales growth has been modest, averaging an annual rate of 8.60% over the past five years, which is below expectations for sustained expansion in the FMCG sector. Operating profit, however, has shown a healthier annual growth rate of 50.86%, suggesting some operational efficiencies despite broader challenges.
Recent Quarterly Results and Earnings Trends
The company has reported negative results for seven consecutive quarters. The Profit Before Tax excluding Other Income (PBT less OI) for the most recent quarter was Rs.3.28 crores, a decline of 67.9% compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) fell by 45.9% to Rs.5.88 crores in the same period.
These declines in profitability have contributed to the stock’s downward trajectory and reflect ongoing pressures on the company’s earnings quality and cash flow generation.
Institutional Investor Activity
Institutional investors have reduced their holdings by 0.6% over the previous quarter, now collectively owning 3.36% of the company’s shares. This reduction in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.
Long-Term and Relative Performance
Over a three-year horizon, Mukka Proteins Ltd has underperformed the BSE500 index, continuing a trend of below-par returns. The stock’s sustained underperformance relative to both sector peers and broader market benchmarks underscores the challenges faced by the company in delivering shareholder value.
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Valuation and Comparative Analysis
Despite the challenges, Mukka Proteins Ltd’s valuation metrics present a contrasting picture. The company’s Enterprise Value to Capital Employed ratio stands at a low 1.2, indicating a very attractive valuation relative to its capital base. This valuation is discounted compared to the historical averages of its peers within the FMCG sector.
However, the stock’s price decline of 40.59% over the past year has been accompanied by a 34% fall in profits, reflecting the market’s response to deteriorating earnings and financial health.
Summary of Key Metrics
To summarise, Mukka Proteins Ltd’s stock has reached a new 52-week low of Rs.22, reflecting a combination of subdued profitability, high leverage, and declining earnings. The company’s financial ratios, including a low ROCE and elevated Debt to EBITDA, alongside consecutive quarterly losses, have contributed to the stock’s underperformance relative to the Sensex and FMCG sector benchmarks.
While operating profit growth has been robust, this has not translated into improved bottom-line results or investor confidence, as evidenced by reduced institutional holdings and persistent price weakness.
Market and Sector Overview
The broader market environment remains mixed, with the Sensex trading near its 52-week high but below its 50-day moving average. The FMCG sector, in which Mukka Proteins Ltd operates, has generally shown resilience, making the stock’s relative underperformance more pronounced.
Investors and analysts will continue to monitor the company’s financial disclosures and market developments as the stock navigates this challenging phase.
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