New Light Apparels Faces Significant Volatility Amid Broader Market Declines
New Light Apparels, a microcap in the Trading & Distributors sector, has faced significant volatility, reaching a 52-week low. The stock has underperformed its sector and shows weak long-term fundamentals, including a low Return on Capital Employed and a high Debt to EBITDA ratio, despite a recent surge in net profit.
New Light Apparels, a microcap player in the Trading & Distributors industry, has experienced significant volatility, hitting a 52-week low of Rs. 1.69 today. The stock has been on a downward trajectory, underperforming its sector by 4.71% and recording a staggering 67.93% decline over the past 20 days. Currently, it trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages.In the broader market context, the Sensex opened lower and is currently down by 0.2%, while small-cap stocks are showing some resilience with a 0.3% gain. Over the past year, New Light Apparels has posted a return of -16.95%, contrasting sharply with the Sensex's 8.31% gain.
Financially, the company has demonstrated weak long-term fundamentals, with a Return on Capital Employed (ROCE) of just 2.69%. Despite a remarkable 2650% increase in net profit reported in December 2024, the stock's overall performance remains concerning, with a high Debt to EBITDA ratio and a low growth rate in net sales and operating profit over the past five years.
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