Recent Price Movement and Market Context
On 2 Feb 2026, Uma Exports Ltd’s stock price continued its downward trajectory, closing near its 52-week low at Rs 30.60. The stock has underperformed its sector by 2.12% on the day and has recorded a consecutive three-day decline, resulting in a cumulative loss of 7.27% over this period. This persistent slide places the stock well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the broader market showed resilience with the Nifty index closing at 25,088.40, up 1.06% (262.95 points). Notably, all market capitalisation segments gained, with Large Caps leading the rally and the Nifty Next 50 index advancing 1.07%. Despite this positive market environment, Uma Exports Ltd’s shares have lagged significantly.
Long-Term Performance and Valuation Metrics
Over the past year, Uma Exports Ltd’s stock has declined by 73.14%, a stark contrast to the Sensex’s 5.37% gain during the same period. The stock’s 52-week high was Rs 119.79, highlighting the extent of the recent depreciation. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index over the last three years, one year, and three months.
From a valuation perspective, the company’s Return on Capital Employed (ROCE) stands at a low 0.6%, while the Enterprise Value to Capital Employed ratio is 0.8, indicating a valuation discount relative to peers. Despite this, the stock’s fundamentals have not supported a positive re-rating, as reflected in its current Mojo Score of 17.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 3 Mar 2025.
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Financial Health and Profitability Concerns
Uma Exports Ltd’s financial metrics reveal ongoing difficulties. The company has experienced a negative compound annual growth rate (CAGR) of -59.35% in operating profits over the last five years, indicating a sustained decline in core earnings. The latest half-year ROCE is at a low 3.40%, underscoring limited efficiency in capital utilisation.
Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 19.90 times, reflecting significant leverage relative to earnings before interest, taxes, depreciation, and amortisation. Interest expenses have surged by 73.82% over the past six months, reaching Rs 11.42 crore, further pressuring profitability.
Profit after tax (PAT) for the most recent quarter was negative at Rs -1.23 crore, a sharp decline of 92.9% compared to the previous four-quarter average. This marks the third consecutive quarter of negative results, highlighting persistent earnings challenges. The average Return on Equity (ROE) is 5.89%, signalling modest returns on shareholders’ funds.
Comparative Performance and Shareholding
When compared to its peers in the Trading & Distributors sector, Uma Exports Ltd’s stock trades at a discount to historical valuations, reflecting market caution. The company’s profits have fallen by 124.5% over the past year, a significant contraction that has weighed heavily on investor sentiment.
The majority shareholding remains with the promoters, indicating concentrated ownership. Despite this, the stock’s performance has not aligned with broader sector gains or market trends, as the company continues to face challenges in reversing its downtrend.
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Summary of Key Metrics
To summarise, Uma Exports Ltd’s stock is trading near its 52-week low of Rs 30.35, reflecting a year-long decline of 73.14%. The company’s financial indicators point to subdued profitability, elevated leverage, and declining earnings. Despite a valuation that appears attractive relative to capital employed, the stock’s performance has been weighed down by negative quarterly results and a challenging earnings trajectory.
Market conditions have been favourable overall, with broad gains across indices and sectors, yet Uma Exports Ltd remains an outlier in terms of share price performance. The stock’s current Mojo Grade of Strong Sell and a low Mojo Score of 17.0 further illustrate the market’s cautious stance.
Conclusion
Uma Exports Ltd’s recent fall to a 52-week low underscores the difficulties faced by the company in maintaining profitability and investor confidence. The stock’s sustained underperformance relative to sector peers and market benchmarks highlights ongoing concerns about its financial health and growth prospects. While the valuation metrics suggest some discount, the prevailing market sentiment remains subdued as the company navigates a challenging environment.
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