Stock Price Movement and Market Context
The stock opened the day with a gap down of -2.22%, reflecting investor caution, and despite an intraday high of Rs.703.3, it ultimately settled near its low point. The day’s low of Rs.591 represents a 2.72% drop intraday and a fresh 52-week low for the company. Notably, the stock outperformed its sector by 6.68% today and reversed a three-day consecutive decline, yet it remains below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling persistent downward momentum.
In contrast, the broader petrochemicals sector gained 2.7% today, while the Sensex showed modest strength, trading at 83,390.27, up 0.14% and just 3.32% shy of its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day average, indicating a generally positive market trend, which Agarwal Industrial Corporation Ltd has not mirrored.
Financial Performance and Recent Results
The company’s recent quarterly results have been underwhelming, contributing to the stock’s decline. Net sales for the latest quarter stood at Rs.408.44 crores, down by 25.9% compared to the previous four-quarter average. Operating profit growth has been modest at an annual rate of 16.26% over the last five years, which is considered poor relative to sector peers.
Operating profit to interest coverage ratio has dropped to a low of 2.79 times, indicating tighter margins for servicing debt. Profit after tax (PAT) for the quarter plunged by 86.5% to Rs.2.80 crores versus the previous four-quarter average, underscoring the pressure on profitability. The company has reported negative results for three consecutive quarters, reflecting a challenging earnings environment.
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Institutional Holding and Market Sentiment
Institutional investors have reduced their stake by 0.87% in the previous quarter, now collectively holding 5.05% of the company’s shares. This decline in institutional participation may reflect concerns over the company’s recent financial trajectory and growth prospects. Institutional investors typically possess greater analytical resources, and their reduced involvement often signals caution.
Long-Term and Relative Performance
Over the past year, Agarwal Industrial Corporation Ltd’s stock has declined by 28.95%, significantly underperforming the Sensex, which gained 9.64% during the same period. The stock has also lagged behind the broader BSE500 index over the last three years, one year, and three months, indicating sustained underperformance relative to the market and its peers.
Valuation and Debt Metrics
Despite the recent price weakness, the company maintains a relatively strong ability to service its debt, with a low Debt to EBITDA ratio of 1.26 times. Return on Capital Employed (ROCE) stands at 11.9%, which is considered attractive. The enterprise value to capital employed ratio is 1.2, suggesting the stock is trading at a discount compared to historical valuations of its peers.
However, profitability has been under pressure, with profits falling by 52.6% over the past year. The company’s market capitalisation is approximately Rs.897 crores, making it the second largest entity in the petrochemicals sector after Manali Petrochem, and it accounts for 15.24% of the sector’s total market cap. Its annual sales of Rs.2,070.29 crores represent 31.08% of the industry’s total sales.
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Mojo Score and Rating Update
Agarwal Industrial Corporation Ltd currently holds a Mojo Score of 29.0, categorised as a Strong Sell. This rating was upgraded from Sell to Strong Sell on 16 Feb 2026, reflecting deteriorating fundamentals and market sentiment. The company’s market cap grade is 4, indicating a mid-tier capitalisation within its sector.
Summary of Key Price and Performance Metrics
The stock’s 52-week high was Rs.1,113.95, highlighting the extent of the recent decline to Rs.591. The day’s trading saw a high of Rs.703.3, a 15.77% intraday gain from the low, but the overall trend remains downward. The stock’s performance today, while showing some recovery after three days of losses, remains subdued relative to the broader market and sector indices.
Sector and Market Dynamics
The petrochemicals sector has shown resilience with a 2.7% gain today, supported by broader market strength led by mega-cap stocks. The Sensex’s positive movement contrasts with Agarwal Industrial Corporation Ltd’s struggles, underscoring the company’s relative weakness within its industry and the wider market.
Conclusion
Agarwal Industrial Corporation Ltd’s stock reaching a 52-week low of Rs.591 reflects a combination of subdued sales, declining profits, reduced institutional interest, and underperformance relative to sector and market benchmarks. While the company maintains some favourable financial metrics such as debt servicing capacity and valuation discounts, the recent quarterly results and rating downgrade to Strong Sell highlight ongoing challenges in its financial performance and market perception.
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