Stock Performance and Market Context
On 16 Feb 2026, Agarwal Industrial Corporation Ltd opened sharply lower with a gap down of -7.68%, continuing its losing streak for the third consecutive day. The stock recorded an intraday low of Rs.633, representing an 8.69% drop on the day and a cumulative decline of -11.09% over the last three sessions. This underperformance is notable against the petrochemicals sector, which itself declined by -2.74% on the same day, and the Sensex, which opened lower by -0.18% and traded near 82,547 points.
The stock’s current price is significantly below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum. In contrast, the Sensex remains 4.38% below its 52-week high of 86,159.02, with its 50-day moving average still above the 200-day average, indicating a more stable market environment overall.
Financial Performance and Ratings
Agarwal Industrial Corporation Ltd’s recent financial disclosures have contributed to the subdued market response. The company reported a sharp decline in net sales, falling by -25.87% to Rs.408.44 crores in the latest quarter compared to the previous four-quarter average. Operating profit to interest coverage ratio has dropped to a low of 2.79 times, reflecting tighter margins and increased financial strain.
Profit after tax (PAT) has plummeted by -86.5% to Rs.2.80 crores in the same period, marking the third consecutive quarter of negative results. This sequence of disappointing earnings has led to a downgrade in the company’s Mojo Grade from Sell to Strong Sell as of 16 Feb 2026, with a Mojo Score of 29.0, underscoring the deteriorated outlook.
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Institutional Holding and Market Capitalisation
Institutional investors have reduced their stake by -0.87% in the last quarter, now collectively holding 5.05% of the company’s shares. This decline in institutional participation may reflect cautious sentiment given the company’s recent performance trends.
With a market capitalisation of approximately Rs.1,036 crores, Agarwal Industrial Corporation Ltd remains the largest entity in the petrochemicals sector, accounting for 17.09% of the sector’s total market cap. Its annual sales of Rs.2,203.96 crores represent 32.43% of the industry’s revenue, highlighting its significant presence despite recent setbacks.
Long-Term and Sectoral Performance
Over the past year, the stock has delivered a negative return of -31.34%, markedly underperforming the Sensex, which gained 8.70% during the same period. The stock has also lagged behind the broader BSE500 index over one, three, and five-year horizons, indicating persistent challenges in maintaining competitive performance.
Within the petrochemicals sector, Agarwal Industrial Corporation Ltd’s decline of -7.60% on the day outpaced the sector’s fall of -2.74%, further emphasising the stock’s relative weakness.
Financial Ratios and Valuation Metrics
Despite recent difficulties, the company maintains a relatively low Debt to EBITDA ratio of 1.26 times, suggesting a manageable debt burden and a capacity to service its liabilities. Additionally, the company’s return on capital employed (ROCE) stands at 11.9%, which is considered attractive within the sector.
The enterprise value to capital employed ratio is 1.4, indicating that the stock is trading at a discount relative to its peers’ historical valuations. However, this valuation discount accompanies a decline in profitability, with profits falling by -32.4% over the past year.
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Summary of Key Metrics
The stock’s 52-week high was Rs.1,113.95, highlighting the extent of the recent decline to Rs.633. The company’s net sales contraction of -25.87% and PAT drop of -86.5% in the latest quarter are significant contributors to the current market valuation and sentiment.
While the company’s ability to service debt remains sound, the combination of falling sales, reduced profitability, and diminished institutional interest has weighed on the stock’s performance. The downgrade to a Strong Sell rating reflects these factors and the ongoing challenges faced by Agarwal Industrial Corporation Ltd within the petrochemicals sector.
Market and Sector Overview
The broader market environment shows mixed signals, with the Sensex trading slightly below its 50-day moving average but maintaining a positive trend above its 200-day average. The petrochemicals sector’s decline of -2.74% on the day contrasts with the sharper fall in Agarwal Industrial Corporation Ltd’s share price, underscoring company-specific pressures.
Conclusion
Agarwal Industrial Corporation Ltd’s fall to a 52-week low of Rs.633 marks a continuation of a challenging period for the company. The stock’s underperformance relative to its sector and the broader market, combined with deteriorating financial results and reduced institutional participation, have contributed to this new low. The company’s valuation metrics indicate a discount relative to peers, but this is accompanied by a notable decline in profitability and sales over recent quarters.
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