The stock recorded an intraday low of Rs.33.78, representing a 6.27% drop from its previous close, while the intraday high was Rs.37, up 2.66%. Despite this brief intraday recovery, the stock closed with a day change of -3.08%, underperforming its sector by 3.68%. This marks the seventh consecutive day of decline, with the stock losing 9.56% over this period.
Trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — Polo Queen Industrial and Fintech’s price trend indicates sustained downward momentum. This contrasts with the broader market, where the Sensex rose by 0.4% to close at 85,010.04, just 0.33% shy of its 52-week high of 85,290.06. The Sensex’s positive performance was supported by mega-cap stocks and bullish moving averages, with the 50-day DMA positioned above the 200-day DMA.
Over the past year, Polo Queen Industrial and Fintech’s stock has declined by 48.92%, a stark contrast to the Sensex’s 9.60% gain over the same period. The stock’s 52-week high was Rs.200.65, highlighting the extent of the recent price erosion.
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Financial metrics reveal challenges for Polo Queen Industrial and Fintech. The company’s return on equity (ROE) stands at 1.22%, indicating limited profitability relative to shareholders’ funds. This figure is notably low compared to typical industry standards. The company has reported negative results for three consecutive quarters, with net sales for the latest quarter at Rs.20.67 crores, reflecting a decline of 11.10%.
Operating cash flow for the year is recorded at Rs.2.04 crores, one of the lowest levels observed. Additionally, the debtors turnover ratio for the half-year period is 3.13 times, suggesting slower collection efficiency. The valuation metrics show a price-to-book value of 6.3, which is considered expensive relative to the company’s ROE of 1.4.
Despite the company’s size, domestic mutual funds hold no stake in Polo Queen Industrial and Fintech, which may reflect a cautious stance towards the stock or its business fundamentals. The stock has underperformed not only in the last year but also over the past three years and three months when compared to the BSE500 index.
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While the short-term performance has been subdued, the company’s operating profit has shown a compound annual growth rate of 41.14% over the longer term. This indicates some underlying growth in core operations despite recent setbacks.
In summary, Polo Queen Industrial and Fintech’s stock has experienced a notable decline to Rs.33.78, its lowest level in 52 weeks. The stock’s performance contrasts sharply with the broader market’s upward trend and is accompanied by subdued financial indicators including low ROE, declining sales, and limited cash flow. The stock’s valuation remains high relative to profitability metrics, and it continues to trade below all major moving averages. These factors collectively illustrate the current challenges faced by the company within the Trading & Distributors sector.
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