Nakoda Group Hits 52-Week Low Amidst Ongoing Financial Struggles and High Debt Levels

Nakoda Group of Industries, a microcap player in the FMCG sector, has reached a new 52-week low of Rs. 29.95 today, reflecting a significant decline in its stock performance. The company has faced a challenging year, with a reported 32.50% drop in stock value over the past 12 months, contrasting sharply with the Sensex's gain of 9.84% during the same period.
Despite today's performance, where Nakoda Group outperformed its sector by 1.79%, the stock remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. The company's long-term fundamentals are concerning, highlighted by a staggering -167.64% CAGR growth in operating profits over the last five years and a high debt-to-EBITDA ratio of 5.06 times, suggesting difficulties in servicing debt.

While the company reported positive quarterly results in December 2024, with net sales growing by 31.9% to Rs. 14.23 crore, the overall financial health remains precarious, marked by negative EBITDA and consistent underperformance against benchmarks over the past three years.