Current Rating and Its Significance
The 'Hold' rating assigned to Shree Pushkar Chemicals & Fertilizers Ltd indicates a neutral stance for investors. It suggests that while the stock is not currently a strong buy candidate, it also does not warrant a sell recommendation. Investors are advised to maintain their existing positions and monitor the company’s developments closely. This rating reflects a balanced view of the company’s quality, valuation, financial trends, and technical indicators as of today.
Quality Assessment
As of 12 January 2026, the company’s quality grade is assessed as average. Shree Pushkar Chemicals & Fertilizers Ltd maintains a low debt-to-equity ratio of 0.04 times, signalling prudent financial management and limited leverage risk. The company has demonstrated consistent operational performance, declaring positive results for six consecutive quarters, which underscores steady business execution. Its return on capital employed (ROCE) stands at a healthy 12.42% for the half-year period, reflecting efficient utilisation of capital resources.
Valuation Perspective
The valuation grade is considered fair. The stock trades at a price-to-book value of 1.9, indicating a premium relative to its peers’ historical averages. This premium is supported by the company’s robust profitability metrics, including a return on equity (ROE) of 12.4%. Despite the premium, the price-to-earnings-to-growth (PEG) ratio is a modest 0.3, suggesting that the stock’s price growth is not excessively stretched compared to its earnings growth. Over the past year, the stock has delivered a 7.76% return, while profits have surged by 52.8%, signalling reasonable valuation in light of strong earnings momentum.
Financial Trend Analysis
The financial trend for Shree Pushkar Chemicals & Fertilizers Ltd is very positive. The latest quarterly net sales reached a record high of ₹255.09 crores, representing a growth of 45.25%. Profit before tax (excluding other income) also rose significantly by 41.98% to ₹18.60 crores. These figures highlight the company’s ability to expand its top line and improve profitability simultaneously. The consistent positive quarterly results over the last six quarters further reinforce the strength of its financial trajectory.
Technical Outlook
From a technical standpoint, the stock exhibits mildly bullish characteristics. Despite recent short-term price declines—such as a 1.54% drop on the latest trading day and a 15.63% year-to-date decrease—the longer-term price action remains supported by institutional participation. Institutional investors have increased their stake by 1.05% over the previous quarter, now collectively holding 1.47% of the company. This growing institutional interest often reflects confidence in the company’s fundamentals and can provide price support.
Stock Performance Overview
As of 12 January 2026, the stock’s performance over various time frames shows mixed trends. While the one-year return is a positive 7.76%, shorter-term returns have been weaker, with a 20.05% decline over three months and a 13.13% drop in the past month. This volatility may be influenced by sector-specific factors affecting the dyes and pigments industry, as well as broader market conditions. Investors should weigh these fluctuations against the company’s solid financial fundamentals and growth prospects.
Implications for Investors
The 'Hold' rating advises investors to adopt a cautious approach. The company’s strong financial results and improving profitability are encouraging, but the premium valuation and recent price softness suggest limited upside in the near term. Investors currently holding the stock may consider maintaining their positions while monitoring quarterly results and sector developments. New investors might wait for more attractive valuation levels or clearer technical signals before initiating positions.
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Sector and Market Context
Operating within the dyes and pigments sector, Shree Pushkar Chemicals & Fertilizers Ltd faces competitive pressures and cyclical demand patterns. The sector’s performance is often linked to industrial activity and export demand, which can be volatile. The company’s ability to sustain growth amid these challenges is reflected in its recent financial results. However, investors should remain mindful of sector headwinds that could impact near-term earnings and stock performance.
Summary of Key Metrics as of 12 January 2026
To summarise, the company’s key financial and market metrics include:
- Mojo Score: 67.0, corresponding to a 'Hold' grade
- Market capitalisation: microcap segment
- Debt to Equity ratio: 0.04 times (low leverage)
- Net Sales growth (quarterly): 45.25%
- Profit Before Tax (excluding other income): ₹18.60 crores, up 41.98%
- Return on Capital Employed (ROCE): 12.42%
- Return on Equity (ROE): 12.4%
- Price to Book Value: 1.9 (fair valuation)
- PEG Ratio: 0.3 (indicating earnings growth support)
- Stock returns: 7.76% over one year, with recent short-term declines
- Institutional ownership: 1.47%, increased by 1.05% in the last quarter
These metrics collectively underpin the current 'Hold' rating, reflecting a company with solid fundamentals but tempered by valuation and market dynamics.
Looking Ahead
Investors should continue to track Shree Pushkar Chemicals & Fertilizers Ltd’s quarterly earnings releases and sector developments. The company’s consistent positive results and strong financial health provide a foundation for potential future growth. However, valuation premiums and recent price volatility warrant a measured investment approach. The 'Hold' rating serves as a prudent recommendation, signalling that the stock is fairly valued relative to its current prospects.
Conclusion
In conclusion, Shree Pushkar Chemicals & Fertilizers Ltd’s 'Hold' rating by MarketsMOJO, last updated on 24 Nov 2025, reflects a balanced view of the company’s quality, valuation, financial trends, and technical outlook as of 12 January 2026. Investors are advised to maintain existing holdings and observe market developments closely, while new entrants may consider waiting for more favourable entry points. The company’s strong financial performance and institutional interest provide a solid base, but valuation and short-term price pressures suggest cautious optimism.
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