Recent Price Movement and Market Context
On 28 Nov 2025, Agarwal Industrial Corporation opened with a gain of 2.41%, reaching an intraday high of Rs.788. Despite this initial positive movement, the stock closed lower, underperforming its sector by 0.38%. This marks the fifth consecutive day of decline, with the stock returning -4.6% over this period. The current price of Rs.765.2 stands well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure.
In contrast, the broader market has shown resilience. The Sensex opened flat and traded slightly higher by 0.07%, standing at 85,777.16 points, just 0.32% shy of its 52-week high of 86,055.86. The Sensex is supported by bullish moving averages, with the 50-day average positioned above the 200-day average, and mega-cap stocks leading the gains. This divergence highlights the relative weakness of Agarwal Industrial Corporation within the petrochemicals sector and the wider market.
Long-Term and Recent Performance Metrics
Over the last year, Agarwal Industrial Corporation’s stock price has declined by 35.05%, a stark contrast to the Sensex’s positive return of 8.50% during the same period. The stock’s 52-week high was Rs.1,383.15, underscoring the extent of the recent price contraction. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the past three years, one year, and three months.
Financial results have mirrored this trend. The company reported a fall in earnings per share (EPS) by 7.98% in the September 2025 quarter, contributing to two consecutive quarters of negative results. Profit after tax (PAT) for the quarter stood at Rs.11.99 crore, reflecting a decline of 46.5% compared to the average of the previous four quarters. Return on capital employed (ROCE) for the half-year was recorded at 12.30%, one of the lowest levels in recent periods. Additionally, the operating profit to interest coverage ratio for the quarter was 4.12 times, indicating a tighter margin for servicing interest obligations.
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Shareholding and Market Interest
Despite the company’s size, domestic mutual funds hold no stake in Agarwal Industrial Corporation. Given that domestic mutual funds typically conduct detailed research on companies, their absence from the shareholding pattern may reflect a cautious stance towards the stock’s current valuation or business outlook. This lack of institutional participation contrasts with the company’s presence in the petrochemicals sector, which generally attracts significant fund interest.
Financial Strength and Valuation Considerations
On the positive side, Agarwal Industrial Corporation maintains a relatively low debt burden, with a Debt to EBITDA ratio of 1.26 times. This suggests a capacity to service debt obligations without excessive strain. The company’s net sales have grown at an annual rate of 25.24%, indicating healthy long-term revenue expansion despite recent profit pressures.
The valuation metrics also present an interesting picture. The company’s ROCE stands at 11.9%, and it carries an enterprise value to capital employed ratio of 1.5, which is considered attractive. The stock currently trades at a discount relative to the historical valuations of its peers in the petrochemicals sector. However, this valuation discount accompanies a profit decline of 32.4% over the past year, reflecting the challenges faced in maintaining profitability.
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Sector and Peer Comparison
Within the petrochemicals sector, Agarwal Industrial Corporation’s recent performance contrasts with broader sector trends. While the sector has experienced fluctuations, the company’s stock has notably lagged behind sector averages and the broader market indices. The stock’s current price level at Rs.765.2 is substantially below its 52-week high of Rs.1,383.15, underscoring the scale of the price adjustment over the past year.
Summary of Key Financial Indicators
The company’s quarterly PAT of Rs.11.99 crore and the decline in EPS by 7.98% highlight the pressure on profitability. The ROCE at 12.30% and operating profit to interest coverage ratio of 4.12 times indicate operational and financial constraints relative to historical levels. Despite these challenges, the company’s net sales growth rate of 25.24% annually and manageable debt levels provide some stability in its financial structure.
Conclusion
Agarwal Industrial Corporation’s stock reaching a 52-week low of Rs.765.2 reflects a combination of subdued earnings performance, limited institutional interest, and broader market dynamics. While the stock has shown some intraday volatility, the prevailing trend over recent months has been downward. The company’s financial metrics reveal areas of concern alongside some strengths, particularly in sales growth and debt management. This complex picture is mirrored in the stock’s valuation and price behaviour within the petrochemicals sector and the wider market context.
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