Visco Trade Associates Faces Severe Volatility Amidst Plummeting Sales and Profitability Concerns

Visco Trade Associates, a microcap player in the trading industry, has experienced significant volatility today, hitting a new 52-week low of Rs. 41.5. The stock has underperformed its sector by a staggering 53.64%, continuing a downward trend with a two-day decline of 55.37%. Opening the day with a notable gap down of 57.79%, it reached an intraday low of Rs. 41.5, reflecting high volatility with an intraday fluctuation of 6.19%.
In terms of financial performance, Visco Trade Associates has reported a drastic decline in net sales, plummeting by 91.98%, with a quarterly profit after tax of Rs. -4.94 crore, marking a 141.6% drop. The company’s return on capital employed (ROCE) stands at a low 6.78%, indicating challenges in profitability. Additionally, a high debt-to-EBITDA ratio of 3.41 times raises concerns about its ability to service debt.

Over the past year, the stock has generated a return of -76.59%, contrasting sharply with the Sensex's positive performance of 5.24%. Despite these challenges, the company has shown some long-term growth potential, with net sales increasing at an annual rate of 30.95%.