Recent Price Movement and Market Context
The stock’s decline on 27-Nov reflects a continuation of a downward trend that has persisted over several months. Over the past week, Epack Durable’s shares have dropped by 6.24%, significantly underperforming the Sensex, which gained 0.10% in the same period. The one-month performance is even more stark, with the stock plunging 25.61% while the benchmark index rose by 1.11%. Year-to-date, the stock has lost more than half its value, declining 54.19%, in contrast to the Sensex’s 9.70% gain. This underperformance extends to the one-year horizon, where Epack Durable’s shares have fallen 32.50% against the Sensex’s 6.84% rise.
On the day in question, the stock touched an intraday low of ₹251.5, marking a fresh 52-week low and signalling persistent selling pressure. The weighted average price indicates that a larger volume of shares traded closer to the day’s low, suggesting bearish sentiment among investors. Furthermore, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, reinforcing the negative technical outlook.
Investor participation has also waned, with delivery volumes on 26-Nov falling by nearly 30% compared to the five-day average, indicating reduced buying interest. Despite this, liquidity remains adequate for moderate trade sizes, allowing investors to transact without significant price impact.
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Fundamental Challenges Weighing on the Stock
Despite a seemingly attractive valuation, with a Return on Capital Employed (ROCE) of 6.1% and an enterprise value to capital employed ratio of 1.9, the company’s fundamentals reveal significant weaknesses. The stock trades at a discount relative to its peers’ historical valuations, yet this has not translated into positive returns for investors. Over the past year, while profits have increased by 60%, the stock’s price has declined by 32.50%, reflecting a disconnect between earnings growth and market sentiment.
Institutional investors have marginally increased their stake by 1.43% in the previous quarter, now holding 7.39% of the company. This suggests some confidence from more sophisticated market participants who may be assessing the company’s long-term prospects more favourably than retail investors. However, this has not been sufficient to arrest the stock’s decline.
Severe Operational and Financial Setbacks
The company’s recent quarterly results have been particularly disappointing. Net sales plunged by 67.8%, culminating in very negative results for the quarter ended September 2025. The company reported a net loss after tax (PAT) of ₹22.25 crores, a staggering 262.9% decline compared to the average of the previous four quarters. Operating profit to interest coverage ratio has dropped to a perilously low 0.03 times, signalling a strained ability to service debt obligations. The net sales figure for the quarter stood at ₹213.26 crores, the lowest in recent periods.
These financial difficulties are compounded by a high Debt to EBITDA ratio of 4.51 times, indicating significant leverage and limited capacity to manage debt repayments comfortably. The weak long-term fundamental strength, as reflected in the average ROCE of 6.14%, further undermines investor confidence.
The company’s underperformance is not limited to the short term. Over the last three years, it has lagged behind the BSE500 index, and this trend extends to the one-year and three-month periods as well. This persistent underperformance highlights structural challenges that have yet to be resolved.
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Conclusion: Why Epack Durable Is Falling
The decline in Epack Durable’s share price on 27-Nov is a reflection of deep-rooted financial and operational challenges. The company’s inability to generate consistent sales growth, coupled with heavy losses and a precarious debt position, has eroded investor confidence. Despite some positive signals such as profit growth and increased institutional participation, these have been overshadowed by poor quarterly results and sustained underperformance relative to market benchmarks.
Technical indicators reinforce the bearish outlook, with the stock trading below all major moving averages and hitting new lows. Reduced investor participation and volume concentration near the day’s low further suggest a lack of buying interest. Until the company demonstrates a clear turnaround in its financial health and operational performance, the stock is likely to remain under pressure.
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