Simran Farms Hits 52-Week Low at Rs.150 Amid Financial Struggles

Simran Farms, a microcap player in the FMCG sector, has reached a new 52-week low of Rs.150 today, marking a significant downturn for the stock. This decline comes after a period of underperformance, with the stock down 30.43% over the past year, contrasting sharply with the Sensex's decline of only 5.89% during the same timeframe.
Despite today's performance, which saw Simran Farms outperform its sector by 1.4%, the stock remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a persistent downward trend. The company has faced challenges, including a high Debt to EBITDA ratio of 4.06 times, which raises concerns about its ability to service debt. Recent financial results have also shown a decline, with profit before tax falling by 66.8% and profit after tax down by 49.1% compared to previous quarters.

With a cash and cash equivalents figure at its lowest of Rs.2.04 crore, Simran Farms continues to navigate a difficult market landscape, reflecting broader challenges within the FMCG industry.