The stock has experienced a consecutive two-day decline, resulting in a cumulative return loss of 6.25% over this period. Today's fall of 3.23% further underperformed its sector by 2.25%, indicating a relatively weaker performance compared to peers. The current price of Rs.0.3 stands notably below its 52-week high of Rs.0.57, highlighting a substantial depreciation over the past year.
Examining the broader market context, the Sensex opened positively with a gain of 91.42 points but later retreated by 161.05 points to trade at 84,881.32, a marginal decline of 0.08%. Despite this, the Sensex remains close to its 52-week high, just 0.48% shy of 85,290.06, and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish trend in the broader market.
In contrast, Vikas Proppant & Granite's stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, underscoring a persistent downtrend. Over the last year, the stock has recorded a negative return of 43.40%, while the Sensex has shown a positive return of 9.75% during the same period. This divergence emphasises the stock’s underperformance relative to the benchmark index.
Only 1% make it here. This micro-cap from the Other Agricultural Products sector passed our rigorous filters with flying colors. Be among the first few to spot this gem!
- Highest rated stock selection
- Multi-parameter screening cleared
- micro-cap quality pick
Financially, Vikas Proppant & Granite exhibits several areas of concern. The company has not declared any results in the last six months, which contributes to uncertainty regarding its current financial standing. Its long-term fundamental strength is considered weak, as reflected in a low Market Cap Grade of 4. The company’s ability to service its debt is limited, with a Debt to EBITDA ratio of 10.88 times, indicating a high level of leverage relative to earnings before interest, taxes, depreciation, and amortisation.
Profitability metrics also suggest challenges. The average Return on Equity (ROE) stands at 4.69%, signalling modest returns generated on shareholders’ funds. Additionally, the company’s profits have declined by 391% over the past year, a significant contraction that aligns with the stock’s downward trajectory. The flat results reported in December 2021 further illustrate a lack of growth momentum.
Given these factors, the stock is considered risky relative to its historical valuations. The combination of weak profitability, high leverage, and absence of recent financial disclosures has contributed to the stock’s current valuation pressures and its fall to the 52-week low.
Considering Vikas Proppant & Granite ? Wait! SwitchER has found potentially better options in Other Agricultural Products and beyond. Compare this micro-cap with top-rated alternatives now!
- Better options discovered
- Other Agricultural Products + beyond scope
- Top-rated alternatives ready
In summary, Vikas Proppant & Granite’s stock has reached a critical low point, trading at Rs.0.3, which is the lowest level in the past 52 weeks. The stock’s performance contrasts sharply with the broader market’s relative strength, as seen in the Sensex’s proximity to its own 52-week high. The company’s financial indicators reveal a high debt burden, subdued profitability, and a lack of recent financial disclosures, all of which contribute to the current market valuation.
Investors analysing this stock should note the persistent downtrend across all key moving averages and the significant negative returns over the past year. The stock’s risk profile remains elevated given the financial metrics and recent performance data.
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 →
