Uma Exports Ltd Stock Hits 52-Week Low Amidst Continued Downtrend

Stock Performance Overview

On 9 January 2026, Uma Exports Ltd’s share price fell by 2.45%, underperforming its sector by 1.99%. This drop extended a losing streak spanning five consecutive trading sessions, during which the stock has declined by 6.87%. The current price of Rs.36.61 stands well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum.

In contrast, the broader market has shown resilience. The Sensex, after a negative start, recovered to trade marginally higher at 84,227.19 points, just 2.29% shy of its 52-week high of 86,159.02. Mid-cap stocks led gains with the BSE Mid Cap index rising by 0.31%, highlighting the relative weakness of Uma Exports within its market context.

Long-Term and Recent Financial Trends

Uma Exports Ltd’s stock has delivered a negative return of 66.10% over the past year, a stark contrast to the Sensex’s positive 8.50% gain during the same period. The stock’s 52-week high was Rs.119, underscoring the extent of the decline.

Financially, the company’s fundamentals have deteriorated over recent years. Operating profits have contracted at a compound annual growth rate (CAGR) of -59.35% over the last five years. The firm’s ability to service debt remains constrained, with a high Debt to EBITDA ratio of 19.90 times, indicating significant leverage relative to earnings.

Profitability metrics also reflect challenges. The average Return on Equity (ROE) stands at 5.89%, signalling modest returns on shareholders’ funds. Return on Capital Employed (ROCE) for the half-year period is notably low at 3.40%, further highlighting subdued capital efficiency.

Recent Quarterly Results and Profitability

The company has reported negative results for three consecutive quarters. The latest quarterly Profit After Tax (PAT) stood at a loss of Rs.1.23 crore, representing a sharp decline of 92.9% compared to the average of the previous four quarters. Interest expenses have surged by 73.82% over the last six months, reaching Rs.11.42 crore, further pressuring the company’s earnings.

These figures contribute to the overall weak financial profile, reflected in the MarketsMOJO Mojo Score of 17.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 3 March 2025. The company’s Market Cap Grade is rated at 4, indicating a relatively small market capitalisation within its sector.

Valuation and Comparative Metrics

Despite the subdued performance, Uma Exports Ltd’s valuation metrics suggest a degree of attractiveness. The company’s ROCE of 0.6 and an Enterprise Value to Capital Employed ratio of 0.8 indicate that the stock is trading at a discount relative to its peers’ historical valuations. However, this valuation is reflective of the company’s ongoing challenges rather than an immediate recovery signal.

Over the past year, profits have declined by 124.5%, underscoring the depth of the company’s earnings contraction. The stock has also underperformed the BSE500 index over the last three years, one year, and three months, reinforcing the trend of below-par returns.

Shareholding and Sector Context

Promoters remain the majority shareholders of Uma Exports Ltd, maintaining control over the company’s strategic direction. The firm operates within the Trading & Distributors sector, which has seen mixed performance relative to broader market indices.

While the Sensex and mid-cap indices have shown resilience and modest gains, Uma Exports Ltd’s stock continues to face downward pressure, reflecting company-specific factors rather than sector-wide trends.

Summary of Key Metrics

To summarise, Uma Exports Ltd’s stock has reached a new 52-week low of Rs.36.61, extending a multi-day decline. The company’s financial indicators reveal a challenging environment characterised by declining profits, elevated debt servicing costs, and subdued returns on equity and capital employed. Despite a valuation discount relative to peers, the stock’s performance remains weak in both short and long-term horizons.

Market conditions have been generally positive, with the Sensex recovering from early losses and mid-cap stocks leading gains, yet Uma Exports Ltd has not mirrored this trend. The company’s Mojo Grade of Strong Sell and low Mojo Score further reflect the current market sentiment and financial realities.

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