Recent Price Movement and Market Context
On 21 Nov 2025, United Foodbrands recorded a day decline of 1.49%, underperforming the Sensex which moved down by 0.33%. This marks the fourth consecutive day of losses for the stock, accumulating a negative return of 6.33% over this period. The stock’s price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent downward momentum.
Over the past week, the stock has declined by 5.60%, contrasting with the Sensex’s positive return of 0.93%. The one-month performance shows a sharper fall of 18.04%, while the three-month period reveals a substantial drop of 33.03%. These figures stand in stark contrast to the Sensex’s respective gains of 1.09% and 4.08% over the same durations.
Long-Term Performance Comparison
United Foodbrands’ long-term returns present a challenging picture. The stock has generated a negative return of 65.39% over the last year, while the Sensex has recorded a gain of 10.62%. Year-to-date, the stock’s return is down by 59.58%, compared to the Sensex’s 9.22% rise. Over a three-year horizon, the stock’s cumulative return stands at -83.35%, whereas the Sensex has appreciated by 39.58%. Notably, the stock has not recorded any positive returns over the past five and ten years, with the Sensex delivering 94.49% and 229.92% gains respectively during these periods.
From struggle to strength! This Small Cap from Textile - Machinery is showing early turnaround signals that look promising. Position yourself now for explosive growth potential ahead!
- - Early turnaround signals
- - Explosive growth potential
- - Textile - Machinery recovery play
Position for Explosive Growth →
Financial Metrics and Operational Results
The company’s financial indicators highlight areas of concern. United Foodbrands has reported negative results for the last three consecutive quarters. Its operating cash flow for the year stands at Rs.147.07 crores, the lowest recorded figure. The profit after tax for the most recent quarter is at a loss of Rs.22.22 crores, representing a decline of 126.0% compared to the previous four-quarter average.
Return on Capital Employed (ROCE) for the half-year period is at 2.54%, the lowest level observed, while the average ROCE over the long term is 3.82%. These figures suggest limited efficiency in generating returns from capital investments. The company’s net sales have grown at an annual rate of 13.24% over the last five years, indicating modest growth relative to industry standards.
Debt and Valuation Considerations
United Foodbrands carries a high Debt to EBITDA ratio of 3.34 times, signalling a relatively low capacity to service its debt obligations. Despite this, the stock’s valuation metrics show an enterprise value to capital employed ratio of 1.3, which is comparatively attractive. The stock is trading at a discount relative to its peers’ average historical valuations, reflecting market caution.
Institutional Holdings and Market Position
Institutional investors hold a significant stake in United Foodbrands, accounting for 28.3% of the shareholding. These investors typically possess greater resources and analytical capabilities to assess company fundamentals, which may influence market perceptions and stock liquidity.
Why settle for United Foodbrands ? SwitchER evaluates this Leisure Services micro-cap against peers, other sectors, and market caps to find you superior investment opportunities!
- - Comprehensive evaluation done
- - Superior opportunities identified
- - Smart switching enabled
Sector and Benchmark Underperformance
United Foodbrands operates within the Leisure Services industry and sector, where it has consistently underperformed its benchmark indices. The stock has lagged behind the BSE500 index in each of the last three annual periods. This persistent underperformance is reflected in the stock’s returns, which have not aligned with broader market gains over multiple time frames.
The stock’s recent underperformance relative to its sector, with a day return lagging by 0.65%, further emphasises the challenges faced in regaining market confidence. The cumulative effect of these trends has culminated in the stock reaching its lowest price point ever.
Summary of Key Data Points
To summarise, United Foodbrands’ stock price has reached Rs.179.25, an all-time low, after a sustained period of decline. The stock’s performance over various time frames contrasts sharply with the Sensex and sector averages. Financial indicators reveal subdued profitability, modest sales growth, and elevated leverage. Institutional ownership remains notable, while valuation metrics suggest the stock trades at a discount compared to peers.
These factors collectively illustrate the severity of the current situation for United Foodbrands within the Leisure Services sector.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
