Rana Sugars Faces Financial Struggles Amidst Significant Market Volatility and Declining Metrics
Rana Sugars, a microcap sugar industry player, has hit a 52-week low of ₹12.50, underperforming its sector by 4.99%. The stock has declined for four consecutive days, totaling a 12.8% drop. Trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, it indicates a bearish trend. Over the past year, Rana Sugars has fallen 35.66%, while the Sensex gained 6.32%. Financially, the company reported a net profit of ₹27.97 crore for the year ending March 2024, down from ₹63.40 crore the previous year. Its return on capital employed stands at 7.46%, with a debt-to-equity ratio of 0.46. These figures highlight the company’s ongoing financial challenges.
Rana Sugars, a microcap player in the sugar industry, has experienced significant volatility, hitting a new 52-week low of Rs. 12.5 today. The stock has underperformed its sector by 4.99% and has seen a consecutive decline over the past four days, resulting in a total drop of 12.8% during this period.
In terms of moving averages, Rana Sugars is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a bearish trend. Over the past year, the stock has recorded a staggering decline of 35.66%, contrasting sharply with the Sensex, which has gained 6.32% during the same timeframe.
Financial metrics reveal a concerning picture for Rana Sugars, with operating profit declining at an annual rate of 6.10% over the last five years. The company’s return on capital employed (ROCE) stands at a low 5.51%, and its profit after tax for the first nine months has plummeted by 78.95%. Additionally, non-operating income constitutes 36.91% of profit before tax, further complicating its financial health.
Overall, Rana Sugars is navigating a challenging market landscape, marked by consistent underperformance against benchmarks and deteriorating technical indicators.
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Source : Markets Mojo
