The stock has been on a downward trajectory for the past three consecutive days, registering a cumulative return loss of 7.14% during this period. This recent decline has positioned Sawaca Enterprises below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained weakness in its price momentum.
In comparison, the broader market index, Sensex, experienced a volatile session. After opening 91.42 points higher, it reversed course to close 176.85 points lower at 84,865.52, a marginal decline of 0.1%. Notably, the Sensex remains close to its 52-week high of 85,290.06, trading just 0.5% below that peak and maintaining a position above its 50-day and 200-day moving averages, indicating relative market resilience.
Over the last year, Sawaca Enterprises has recorded a negative return of 36.51%, contrasting sharply with the Sensex’s positive 9.73% performance over the same timeframe. The stock’s 52-week high was Rs.0.83, more than double its current level, underscoring the extent of its decline.
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Financially, Sawaca Enterprises is facing several headwinds. The company’s operating cash flow for the year stands at a low of Rs. -36.30 crores, reflecting cash outflows from core business activities. The profit after tax (PAT) for the nine-month period is reported at Rs. -1.51 crores, showing a decline of 55.89% compared to the previous period. Additionally, the profit before tax excluding other income for the quarter is Rs. -0.87 crores, which has fallen by 410.71%, indicating significant pressure on profitability.
The company’s earnings before interest and tax (EBIT) to interest ratio averages at -0.89, highlighting challenges in servicing debt obligations. This weak ratio contributes to the company’s negative return on capital employed (ROCE), signalling limited efficiency in generating returns from its capital base.
From a valuation perspective, Sawaca Enterprises is trading at levels considered risky relative to its historical averages. The stock’s negative earnings before interest, tax, depreciation and amortisation (EBITDA) further accentuate concerns regarding its financial health. Over the past year, profits have declined by 178%, a stark contrast to the stock’s price movement.
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Ownership structure reveals that the majority of shares are held by non-institutional investors, which may influence liquidity and trading patterns. The company’s market capitalisation grade is rated at 4, reflecting its micro-cap status within the sector.
In summary, Sawaca Enterprises’ stock has reached a new low point in its 52-week trading range, driven by subdued financial results and weak fundamental indicators. The stock’s performance contrasts with the broader market’s relative strength, as seen in the Sensex’s proximity to its 52-week high and positive moving average trends.
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