The stock has been on a downward trajectory for the past three consecutive days, registering a cumulative return loss of 2.09% during this period. Today's decline of 0.73% further extends this trend, with the stock underperforming the Power sector by 0.75%. Veer Energy & Infrastructure is currently trading 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 has shown resilience. The Sensex opened flat but moved into positive territory, trading at 84,749.82 points, up 0.09%. The index remains close to its 52-week high of 85,290.06, just 0.64% away, supported by mega-cap stocks leading the gains. The Sensex is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a bullish trend for the benchmark index.
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Veer Energy & Infrastructure's one-year performance stands at a negative 29.87%, a stark contrast to the Sensex's positive 9.24% return over the same period. The stock's 52-week high was Rs.26.04, highlighting the extent of the decline to the current low. This underperformance extends beyond the short term, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.
Financially, the company exhibits several areas of concern. It has reported operating losses, which contribute to a weak long-term fundamental strength. The company's ability to service its debt is limited, as reflected by an average EBIT to interest ratio of -1.93. This negative ratio indicates that earnings before interest and tax are insufficient to cover interest expenses. Additionally, the company has reported a negative return on capital employed (ROCE), underscoring challenges in generating returns from its capital base.
Recent financial results show a subdued performance. The operating cash flow for the year is at its lowest, recorded at Rs. -4.59 crores. Net sales for the nine-month period stand at Rs.5.68 crores, reflecting a decline of 35.09% compared to previous periods. Cash and cash equivalents at the half-year mark are minimal, at Rs.0.02 crores, indicating limited liquidity buffers.
The stock's earnings before interest, tax, depreciation, and amortisation (EBITDA) are negative, which adds to the risk profile of the company. Over the past year, profits have fallen by 103.2%, further emphasising the financial strain. The stock is trading at valuations that are considered risky relative to its historical averages.
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Ownership structure reveals that the majority shareholders are non-institutional investors, which may influence the stock's liquidity and trading patterns. The company's market capitalisation grade is rated at 4, indicating a relatively modest market cap within its sector.
In summary, Veer Energy & Infrastructure's stock has reached a significant low point at Rs.14.85, reflecting a combination of weak financial metrics, declining sales, negative cash flows, and a challenging debt servicing capacity. While the broader market and sector indices maintain positive momentum, the stock's performance remains subdued across multiple time frames and financial indicators.
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