Aarti Surfactants Ltd Stock Falls to 52-Week Low of Rs.368.5

Stock Performance and Market Context

On 9 Jan 2026, Aarti Surfactants Ltd’s share price declined by 1.20% during the trading session, hitting an intraday low of Rs.368.5, which represents the lowest level in the past year. This marks a continuation of a six-day losing streak, during which the stock has fallen by 4.81%. The stock’s performance today lagged behind the Specialty Chemicals sector by 1.48%, signalling relative weakness within its industry group.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the prevailing bearish momentum. In contrast, the broader market, represented by the Sensex, showed resilience by recovering from an early negative opening to close marginally higher at 84,227.19, just 2.29% shy of its 52-week high of 86,159.02. Mid-cap stocks led the market rally with the BSE Mid Cap index gaining 0.31% on the day.

Long-Term Price and Relative Performance

Over the past year, Aarti Surfactants Ltd has delivered a total return of -40.37%, significantly underperforming the Sensex, which posted an 8.50% gain over the same period. The stock’s 52-week high was Rs.651, indicating a steep decline of approximately 43.4% from that peak to the current 52-week low. This persistent underperformance has been consistent over the last three years, with the stock lagging behind the BSE500 benchmark in each annual period.

Financial Metrics and Profitability

Aarti Surfactants Ltd’s financial profile reveals several factors contributing to its current valuation and market sentiment. The company’s Debt to EBITDA ratio stands at 2.98 times, indicating a relatively high leverage level that may constrain financial flexibility. Profitability metrics also reflect modest returns, with an average Return on Equity (ROE) of 9.11%, which suggests limited efficiency in generating profits from shareholders’ funds.

Operating profit has declined at an annualised rate of -8.49% over the past five years, pointing to challenges in sustaining long-term growth. Despite this, the company has reported positive results for the last three consecutive quarters. In the latest six-month period, Profit After Tax (PAT) rose sharply by 196.37% to Rs.4.50 crores, while net sales increased by 34.26% to Rs.395.07 crores. The Debtors Turnover Ratio for the half year was recorded at a robust 10.35 times, indicating efficient receivables management.

Valuation and Market Grade

The company’s Return on Capital Employed (ROCE) is 9.1%, and it trades at an Enterprise Value to Capital Employed ratio of 1.2, which suggests an attractive valuation relative to its capital base. The stock is currently trading at a discount compared to the average historical valuations of its peers in the specialty chemicals sector. The Price/Earnings to Growth (PEG) ratio stands at 1.3, reflecting the relationship between its earnings growth and valuation.

MarketsMOJO assigns Aarti Surfactants Ltd a Mojo Score of 43.0 and a Mojo Grade of Sell, an upgrade from its previous Strong Sell rating as of 19 Sep 2025. The company holds a Market Cap Grade of 4, indicating a mid-sized market capitalisation within its sector.

Shareholding and Sectoral Position

The majority shareholding in Aarti Surfactants Ltd remains with the promoters, maintaining a stable ownership structure. The company operates within the Specialty Chemicals industry, a sector that has seen mixed performance amid broader market fluctuations. While the Sensex and mid-cap indices have shown resilience, Aarti Surfactants Ltd’s stock has not mirrored this trend, reflecting company-specific factors influencing investor sentiment.

Despite the recent price weakness, the company’s recent quarterly results indicate some operational improvements, with sales and profit growth in the latest half-year period. However, these positive financial developments have yet to translate into a sustained recovery in the stock price, which continues to trade below all major moving averages.

Summary of Key Price and Performance Indicators

To summarise, Aarti Surfactants Ltd’s stock has declined to Rs.368.5, its lowest level in 52 weeks, following a six-day losing streak and underperformance relative to its sector and benchmark indices. The stock’s valuation metrics suggest it is trading at a discount compared to peers, but financial leverage and modest profitability metrics remain areas of concern. The company’s recent positive earnings growth contrasts with its longer-term trend of declining operating profits and sustained underperformance against the market.

The broader market environment remains supportive, with the Sensex near its 52-week high and mid-cap stocks leading gains. However, Aarti Surfactants Ltd’s share price trajectory highlights the challenges faced by the company within the specialty chemicals sector and the market’s cautious stance towards its financial and operational profile.

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