Intraday Price Movement and Market Context
The stock opened with a gap down of 2.09% and reached an intraday low of Rs.700, reflecting a 2.1% decline on the day. This movement followed two consecutive days of gains, signalling a reversal in short-term momentum. Compared to its sector peers, Super Sales India underperformed by 0.52% during the trading session.
On the broader market front, the Sensex opened 187.75 points lower and was trading at 84,897.24, down 0.37%. Despite this dip, the Sensex remains close to its 52-week high of 86,159.02, just 1.49% away, and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish trend for the benchmark index.
In contrast, Super Sales India is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — highlighting a sustained downward trend in its price action over multiple time frames.
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One-Year Performance and Valuation Metrics
Over the past year, Super Sales India’s stock price has declined by 50.77%, a stark contrast to the Sensex’s 3.85% gain during the same period. The stock’s 52-week high was Rs.1,479.95, indicating that the current price represents a substantial reduction from its peak levels.
The company’s market capitalisation is graded at 4, reflecting its mid-cap status within the Garments & Apparels sector. Despite the price decline, the company maintains a low average debt-to-equity ratio of 0.09 times, suggesting limited leverage on its balance sheet.
Profitability metrics show mixed signals. The company reported a profit before tax excluding other income of Rs.2.91 crore in the September quarter, representing a growth of 219.1% compared to the previous four-quarter average. Net profit after tax for the same period was Rs.4.06 crore, showing a significant increase of 1692.2% relative to the prior four-quarter average. Operating profit to interest ratio reached a high of 5.29 times, indicating strong coverage of interest expenses by operating earnings.
However, the return on capital employed (ROCE) averaged 5.79%, which is considered low and points to limited profitability generated per unit of capital invested. The company’s ROCE for the recent period stands at 0.5, accompanied by an enterprise value to capital employed ratio of 0.5, suggesting an attractive valuation relative to capital utilisation.
Long-Term Growth and Profitability Trends
Examining the company’s growth over the last five years, net sales have expanded at an annual rate of 12.73%, while operating profit has grown at 11.17% annually. These figures indicate moderate growth in revenue and earnings, though the pace may be considered below par compared to sector averages.
Profitability has shown a decline over the past year, with profits falling by 62.5%. This decline, coupled with the stock’s negative return over the same period, reflects challenges in sustaining earnings growth and market valuation.
Super Sales India has also underperformed the BSE500 index over the last three years, one year, and three months, signalling persistent relative weakness in its stock performance.
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Shareholding and Sectoral Position
The majority shareholding in Super Sales India is held by promoters, indicating concentrated ownership. The company operates within the Garments & Apparels industry, a sector that has experienced varied performance across different players in recent times.
Despite the recent price decline, the company’s valuation remains discounted compared to its peers’ historical averages, which may reflect market caution given the company’s recent financial trends and stock performance.
Summary of Key Price and Performance Indicators
To summarise, Super Sales India’s stock has reached a 52-week low of Rs.700, trading below all major moving averages and underperforming both its sector and the broader market indices. The stock’s one-year return of -50.77% contrasts sharply with the Sensex’s positive 3.85% return. Profitability metrics show recent improvements in quarterly earnings, yet long-term growth and returns on capital remain subdued.
The company’s low debt levels and attractive valuation ratios provide some balance to the overall picture, though the stock’s recent price action reflects prevailing market concerns and sectoral pressures.
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