Shri Jagdamba Polymers Ltd is Rated Sell

Understanding the Current Rating

The Sell rating assigned to Shri Jagdamba Polymers Ltd indicates a cautious stance for investors, suggesting that the stock may underperform relative to the broader market or its sector peers. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall Mojo Score, which currently stands at 47.0, placing the stock firmly in the Sell category.

Quality Assessment

As of 22 January 2026, Shri Jagdamba Polymers Ltd maintains a good quality grade. This reflects the company’s operational fundamentals and business model stability. Despite this, the company’s long-term growth has been modest, with operating profit growing at an annualised rate of 11.12% over the past five years. While this growth rate is positive, it is not sufficiently robust to offset other concerns impacting the stock’s overall appeal.

Valuation Perspective

The valuation grade for Shri Jagdamba Polymers Ltd is currently very attractive. This suggests that the stock is trading at a price level that could be considered favourable relative to its earnings, assets, or cash flows. Investors looking for value opportunities may find this aspect appealing. However, valuation alone does not guarantee positive returns, especially when other factors such as financial trends and technical indicators are less favourable.

Financial Trend Analysis

The company’s financial trend is rated as flat, signalling a lack of significant improvement or deterioration in recent quarters. The latest data shows operating cash flow for the year at a low of ₹-18.89 crores, indicating cash generation challenges. Additionally, the profit after tax (PAT) for the most recent quarter stood at ₹7.95 crores, reflecting a sharp decline of 35.0% compared to the average of the previous four quarters. Dividend per share (DPS) has also dropped to zero, underscoring the company’s cautious stance on shareholder returns amid financial pressures.

Technical Outlook

From a technical standpoint, the stock is rated bearish. This is supported by recent price movements and momentum indicators. As of 22 January 2026, the stock has experienced a 1-day gain of 2.03%, but this short-term uptick contrasts with longer-term negative trends. Over the past six months, the stock has declined by 43.42%, and over the last year, it has delivered a negative return of 17.18%. These figures highlight sustained selling pressure and weak investor sentiment.

Performance Relative to Benchmarks

Shri Jagdamba Polymers Ltd has underperformed key market indices such as the BSE500 over multiple time frames, including the last three years, one year, and three months. This underperformance, combined with flat financial trends and bearish technical signals, reinforces the rationale behind the Sell rating. Investors should be aware that the stock’s recent returns have been disappointing, with a year-to-date decline of 8.02% and a one-month drop of 6.26%.

Implications for Investors

The Sell rating suggests that investors may want to exercise caution with Shri Jagdamba Polymers Ltd at this time. While the stock’s valuation appears attractive, the combination of flat financial performance, bearish technicals, and underwhelming returns indicates potential risks. Investors seeking capital preservation or growth may prefer to consider alternative opportunities with stronger fundamentals and more positive momentum.

Summary of Key Metrics as of 22 January 2026

• Mojo Score: 47.0 (Sell)


• Quality Grade: Good


• Valuation Grade: Very Attractive


• Financial Grade: Flat


• Technical Grade: Bearish


• Market Capitalisation: Microcap


• 1-Year Return: -17.18%


• 6-Month Return: -43.42%


• Operating Cash Flow (Yearly): ₹-18.89 crores


• Profit After Tax (Quarterly): ₹7.95 crores (down 35.0%)


• Dividend Per Share (Yearly): ₹0.00

Contextualising the Stock’s Position in the Packaging Sector

Shri Jagdamba Polymers Ltd operates within the packaging sector, a space that has seen varied performance depending on end-market demand and raw material cost pressures. The company’s microcap status means it is more susceptible to volatility and liquidity constraints compared to larger peers. Investors should consider sector dynamics alongside company-specific factors when evaluating this stock.

Long-Term Growth Challenges

The company’s operating profit growth of 11.12% per annum over five years, while positive, is relatively modest in the context of the packaging industry’s evolving competitive landscape. This slow growth trajectory, coupled with flat recent financial results, suggests limited momentum to drive significant shareholder value in the near term.

Dividend and Cash Flow Concerns

The absence of dividends and negative operating cash flow highlight potential liquidity and capital allocation challenges. For income-focused investors, the zero dividend per share as of the latest fiscal year may be a deterrent. Negative cash flow also raises questions about the company’s ability to fund operations and growth without external financing.

Technical Signals and Market Sentiment

Technical indicators remain bearish, reflecting investor caution. The stock’s recent price action, including a 21.90% decline over three months and a 43.42% drop over six months, underscores persistent selling pressure. While short-term rebounds such as the 2.03% gain on 22 January 2026 may occur, the overall trend remains negative.

Conclusion

In summary, Shri Jagdamba Polymers Ltd’s current Sell rating by MarketsMOJO is supported by a combination of modest quality, attractive valuation, flat financial trends, and bearish technicals. Investors should weigh these factors carefully, recognising that while the stock may offer value on price, the underlying fundamentals and market sentiment suggest caution. Monitoring future quarterly results and sector developments will be essential for reassessing the stock’s outlook.

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