Simran Farms Faces Financial Strain Amid Persistent Stock Decline and High Debt Levels

Simran Farms, a microcap player in the FMCG sector, has recently reached a 52-week low of Rs. 154, marking a significant downturn in its stock performance. The company has underperformed its sector by 0.49% today and has seen a consecutive decline over the past two days, with a total drop of 1.19% during this period.
In terms of moving averages, Simran Farms is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a persistent downward trend. Over the past year, the stock has experienced a notable decline of 28.59%, contrasting sharply with the Sensex, which has only fallen by 2.82% during the same timeframe.

Financial metrics reveal a concerning picture for Simran Farms, with a high Debt to EBITDA ratio of 4.06 times, suggesting challenges in servicing its debt. Recent quarterly results also reflect a significant drop in profitability, with a 66.8% decline in profit before tax and a 49.1% decrease in profit after tax compared to previous quarters. The company's cash and cash equivalents have reached a low of Rs. 2.04 crore, further emphasizing its financial strain.