Vikram Thermo Faces Significant Volatility Amid Declining Sales and Profitability Concerns

Vikram Thermo (India) has experienced significant volatility today, reaching a new 52-week low of Rs. 149. The stock has underperformed its sector, declining by 4.93% and marking a consecutive two-day drop of 10.27%. Intraday trading saw the stock hit a low of Rs. 149, reflecting a decrease of 6.02% from the previous close.
In terms of financial performance, the company reported a net sales figure of Rs. 27.11 crore, the lowest in recent quarters, while profit after tax (PAT) fell sharply by 54.6% compared to the previous quarter's average, totaling Rs. 4.07 crore. The company's earnings before interest, taxes, depreciation, and amortization (PBDIT) also hit a low of Rs. 6.68 crore.

Despite a high return on equity (ROE) of 27.7%, Vikram Thermo's valuation appears expensive with a price-to-book ratio of 4.1, exceeding the average historical valuations of its peers. Over the past year, the stock has generated a return of -16.06%, significantly lagging behind the Sensex, which has seen a positive return of 5.32%. The company maintains a low debt-to-equity ratio of 0.03, indicating a conservative financial structure.