Mukka Proteins an aquaculture company saw a sharp fall in its stock price soon after the company declared its Quarter 1 Results for the month ended June 2024 dated August 13th 2024
Mukka Proteins share fell by -8% on August 13th 2024. The shares were trading within the range of Rs. 44.45 to Rs. 51.10
The stock has been on the downturn from the past 3 days and has under performed the sector by 3.9% 
Despite the recent decline, there has been some sort of interest shown by the retail investors in this sector since it is a niche sector fairly new into the stock market. It is one of the first companies in the Aquaculture industry to be listed on the stock market.
 

Let us dive into the analysis of Consolidated financial statements for Quarter 1 

For the first Quarter ended June 2024 Mukka Proteins reported Sales Revenue of ₹ 1753.51 Million as compared to ₹ 2768.04 Million earned a year ago in June 2023 
Net Income for quarter ended June 2024 was ₹42.26 million compared to ₹35.86 million earned a year ago in June 2023
Basic earnings per share have however declined marginally to ₹0.14 as compared to ₹0.16 a year ago in June 2023 
 

Reasons for fall in Sales Revenue 

The Sales revenue in Quarter 1 fell by almost 36% YOY which is rather significant. But one needs to realize that fishing as an industry is a seasonal business and revenue generation is cyclical in nature. These industries are regulated by the Government and have to adhere to various regulations. There is a ban on mechanized boat fishing during monsoon season in Karnataka which lasts from June 1st to July 31st wherein which speed boats are not allowed to venture into the seas for 61 days. This seasonal fishing ban is to allow the fish to breed without any interruptions.
 

Net Profit rises by 17.83%  

Net profit of Mukka Proteins rose by 17.83% to ₹ 4.23 crore in the quarter ended June 2024 as against ₹ 3.59 crore earned during the previous quarter ended June 2023. Even though it is a marginal increase, it goes on to show that the company is promising to perform better. 
 

Loss by Associates / Joint Ventures 

There is a marginal loss of ₹ 1.9 million from Associate and Joint Ventures. However there has been significant loss reduction as compared to loss incurred last year in June 2023 amounting to ₹ 20.18 million. This shows that the company has taken reasonable measures to reduce the loss from associates and joint ventures 
 

Reasons for fall in Stock Price

Mukka proteins fell after Quarter 1 results by nearly 8%. It has under performed the Sensex by 7.9% . The possible reason for this under performance could be that the aquaculture industry as a whole under performed the sector by 3% which could have contributed to the fall in price of Mukka proteins shares. It is noteworthy to consider that the stock had outperformed the sector by 15% in the last one month. Therefore there is no conclusive evidence that stock's performance is solely dependent on market performance.
One may have to wait and exercise caution while dealing with the shares of Mukka Proteins. Since it is a small company, there are not many analysts who give their views about the stocks performance. It is better to wait and see if Mukka Proteins can outperform in the coming quarters before making fresh entries in the stock
 

Disclaimer :

It is important to note that the analysis was purely for the purpose of education and information to those interested in evaluating the performance of Mukka Proteins. The analysis is based on factual information and dos not include any speculation and assumptions. Kindly do not consider this as a buying or selling recommendation. Consult your financial advisor before taking positions in Mukka Proteins