On the trading day, Uniroyal Marine Exports recorded a day change of -4.97%, underperforming its FMCG sector peers by 12.15%. While the Aquaculture sector gained 7.54%, the stock’s price fell below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This downward momentum highlights the stock’s current weakness relative to both its sector and the broader market.
In contrast, the Sensex index showed resilience, opening flat but closing with a gain of 334.86 points at 84,978.64, a 0.36% increase. The Sensex remains close to its 52-week high of 85,290.06, trading above its 50-day and 200-day moving averages, signalling a bullish trend for the broader market. Mid-cap stocks also led the market with the BSE Mid Cap index gaining 0.38% on the day.
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Uniroyal Marine Exports’ stock price has declined by 34.00% over the past year, a stark contrast to the Sensex’s 9.58% gain during the same period. The stock’s 52-week high was Rs.22.54, indicating a substantial drop to the current low. This performance reflects persistent challenges faced by the company within the FMCG sector.
Financially, the company’s long-term fundamentals show areas of concern. The debt-equity ratio stands at a high 12.2 times, indicating significant leverage. Over the last five years, net sales have shown a negative annual growth rate of 7.12%, while operating profit has remained flat. These figures suggest limited expansion in revenue and earnings capacity over the medium term.
Promoter confidence appears to have waned, with promoters reducing their stake by 0.85% in the previous quarter, now holding 29.49% of the company. Such a reduction in promoter holding may be interpreted as a sign of cautious outlook towards the company’s prospects.
Uniroyal Marine Exports has consistently underperformed the BSE500 benchmark over the last three years, with returns lagging each annual period. This trend underscores the stock’s relative weakness compared to a broad market index.
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Despite the stock’s price decline, Uniroyal Marine Exports has reported positive results for the last four consecutive quarters. Operating cash flow for the year reached Rs.1.68 crore, while profit after tax for the latest six months was Rs.0.22 crore. The company’s return on capital employed (ROCE) for the half year stood at 20.29%, with an annual ROCE of 14.9%, indicating efficient use of capital relative to earnings.
The stock’s valuation metrics show it trading at a discount compared to its peers’ historical averages. The enterprise value to capital employed ratio is 1.5, suggesting a relatively modest valuation in relation to the company’s capital base. Over the past year, profits have risen by 153.5%, even as the stock price declined, resulting in a PEG ratio of zero.
In summary, Uniroyal Marine Exports’ stock has reached a significant 52-week low of Rs.11.47 amid a backdrop of high leverage, subdued sales growth, and promoter stake reduction. While the company has demonstrated some positive financial results recently, the stock’s performance remains subdued relative to sector peers and market benchmarks.
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