Mukka Proteins Ltd Stock Hits 52-Week Low at Rs.23.75

Recent Price Movement and Market Context

The stock price of Mukka Proteins Ltd declined by 1.25% today, closing at Rs.23.75, which is its lowest level in the past year. This drop comes after two consecutive days of losses, during which the stock has fallen by 0.91%. Despite this, the stock marginally outperformed the Aquaculture sector, which declined by 2.06% on the same day. However, Mukka Proteins remains well below its 52-week high of Rs.41.08, representing a decline of approximately 42.2% from that peak.

Technical indicators show the stock trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend. In contrast, the broader Sensex index has shown resilience, recovering from an early negative opening to close 0.08% higher at 85,832.35, just 0.38% shy of its 52-week high of 86,159.02. The Sensex has also been on a three-week consecutive rise, supported by mid-cap stocks gaining 0.14% today.

Financial Performance and Profitability Concerns

Mukka Proteins Ltd’s financial metrics reveal ongoing difficulties in generating robust returns. The company’s average Return on Capital Employed (ROCE) stands at 9.16%, indicating modest profitability relative to the capital invested. This figure is considered low within the FMCG sector, where efficient capital utilisation is critical for sustainable growth.

Net sales have grown at an annualised rate of 8.60% over the past five years, which is moderate but insufficient to offset other financial pressures. The company’s ability to service its debt is constrained, as reflected by a high Debt to EBITDA ratio of 5.26 times. This elevated leverage ratio suggests significant interest obligations relative to earnings before interest, taxes, depreciation, and amortisation.

Quarterly Earnings and Profitability Trends

The company has reported negative results for seven consecutive quarters, underscoring persistent earnings pressure. The Profit Before Tax excluding Other Income (PBT less OI) for the most recent quarter stood at Rs.3.28 crore, a sharp 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 crore in the latest quarter.

Interest expenses have reached a peak of Rs.12.82 crore, further weighing on net profitability. The combination of declining earnings and rising interest costs has contributed to the subdued financial performance and the stock’s downward trajectory.

Investor Participation and Market Sentiment

Institutional investors have reduced their holdings by 0.6% over 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 metrics and recent performance trends. Institutional investors typically possess greater resources to analyse company fundamentals, and their reduced stake could signal concerns about the company’s near-term prospects.

Over the past year, Mukka Proteins Ltd has delivered a negative return of 40.25%, significantly underperforming the Sensex, which gained 8.34% over the same period. The stock has also lagged behind the BSE500 index across one-year, three-year, and three-month timeframes, indicating below-par performance relative to broader market benchmarks.

Valuation and Comparative Metrics

Despite the challenges, Mukka Proteins Ltd’s valuation metrics suggest a relatively attractive entry point compared to its peers. The company’s Enterprise Value to Capital Employed ratio stands at 1.3, which is lower than the average historical valuations of comparable FMCG companies. This discount reflects the market’s cautious stance but also indicates that the stock is trading at a subdued valuation level.

Operating profit has grown at an annual rate of 50.86%, which is a positive indicator of underlying business growth. However, this has not translated into improved net profitability, as profits have declined by 34% over the past year. The disparity between operating profit growth and net profit decline highlights the impact of elevated interest costs and other expenses on the company’s 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, upgraded from a previous Strong Sell rating on 14 Nov 2025. The company holds a Market Cap Grade of 4, reflecting its micro-cap status within the FMCG sector. The stock’s recent price action and financial metrics illustrate a company facing multiple headwinds, including subdued profitability, high leverage, and declining institutional interest.

While the broader market and sector indices have shown resilience, Mukka Proteins Ltd’s share price continues to reflect the challenges embedded in its financial performance and valuation. The stock’s fall to Rs.23.75 marks a significant milestone in its price history, underscoring the ongoing pressures it faces within the competitive FMCG landscape.

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