Stock Performance and Market Context
The stock opened sharply lower with a gap down of -3.65% and continued to slide throughout the trading session, closing at the intraday low of Rs.650.05. This marks a consecutive fourth day of decline, with the stock losing -5.58% over this period. The day’s performance underperformed the petrochemicals sector, which itself fell by -2.23%, while the stock lagged the sector by an additional -0.32% today.
Agarwal Industrial Corporation Ltd is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This technical positioning reflects the stock’s ongoing weakness relative to its historical price trends.
On a broader scale, the Sensex opened lower by -385.82 points and is trading at 81,672.68, down -0.62%. The index has been on a three-week losing streak, shedding -4.77% in that timeframe. Notably, the Sensex is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some underlying resilience in the market despite recent weakness.
Financial Performance and Ratings
Agarwal Industrial Corporation Ltd’s financial results have contributed to the stock’s decline. The company reported a fall in earnings per share (EPS) by -7.98%, leading to a downgrade in its Mojo Grade from Sell to Strong Sell as of 3 November 2025. The latest quarterly profit after tax (PAT) stood at Rs.11.99 crore, a sharp decline of -46.5% compared to the average of the previous four quarters.
Return on Capital Employed (ROCE) for the half-year period is at a low 12.30%, while the operating profit to interest coverage ratio has dropped to 4.12 times, the lowest recorded in recent quarters. These metrics highlight the company’s reduced profitability and tighter financial margins.
Institutional investor participation has also waned, with a decrease of -0.87% in their stake over the previous quarter, now collectively holding only 5.05% of the company’s shares. This reduction in institutional holding may reflect concerns over the company’s recent performance and outlook.
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Long-Term and Sectoral Performance
Over the past year, Agarwal Industrial Corporation Ltd has delivered a negative return of -42.54%, significantly underperforming the Sensex, which gained 7.75% in the same period. The stock has also lagged the BSE500 index over the last three years, one year, and three months, indicating persistent underperformance relative to broader market benchmarks.
The petrochemicals sector itself has faced headwinds, with the sector index declining by -2.23% today. Additionally, the NIFTY MEDIA index also hit a new 52-week low, reflecting sectoral pressures that may be influencing sentiment across related industries.
Balance Sheet and Valuation Metrics
Despite recent setbacks, Agarwal Industrial Corporation Ltd maintains a relatively low Debt to EBITDA ratio of 1.26 times, suggesting a strong ability to service its debt obligations. Net sales have demonstrated healthy long-term growth, expanding at an annual rate of 25.24%, which indicates underlying demand for the company’s products.
The company’s valuation metrics remain attractive, with a ROCE of 11.9 and an enterprise value to capital employed ratio of 1.4, positioning the stock at a discount compared to its peers’ historical averages. However, profits have declined by -32.4% over the past year, which has weighed on the stock’s market performance.
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Summary of Key Metrics
The stock’s 52-week high was Rs.1,244, highlighting the extent of the recent decline to Rs.650.05. The Mojo Score currently stands at 29.0, reflecting the Strong Sell rating assigned on 3 November 2025, a downgrade from the previous Sell grade. The company’s market capitalisation grade is 3, indicating a mid-tier market cap size within its sector.
Day-to-day volatility has been notable, with the stock’s day change recorded at -2.18% today. The ongoing downward trend and underperformance relative to both sector and benchmark indices underscore the challenges faced by Agarwal Industrial Corporation Ltd in recent months.
Conclusion
Agarwal Industrial Corporation Ltd’s fall to a new 52-week low at Rs.650.05 reflects a combination of subdued financial results, reduced institutional participation, and broader market pressures within the petrochemicals sector. While the company maintains some positive attributes such as manageable debt levels and long-term sales growth, recent earnings declines and valuation adjustments have contributed to the stock’s current position below key technical levels.
Investors and market participants will continue to monitor the company’s financial disclosures and sector developments as the stock navigates this challenging phase.
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