Recent Price Movement and Market Context
On 4 December 2025, Agarwal Industrial Corporation's share price touched Rs.745, the lowest level recorded in the past year. This decline follows a two-day stretch where the stock recorded a cumulative return of -2.02%. The current price stands below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
In contrast, the broader market has shown resilience. The Sensex, after an initial dip of 119.25 points, rebounded to close at 85,257.62, up 0.18% on the day. The index remains close to its 52-week high of 86,159.02, trading just 1.06% below that peak. Mid-cap stocks led the market gains with the BSE Mid Cap index rising by 0.26%, while the Sensex maintains a bullish stance, trading above its 50-day moving average with the 50 DMA positioned above the 200 DMA.
Performance Overview Over the Past Year
Over the last twelve months, Agarwal Industrial Corporation's stock has recorded a return of -38.57%, a stark contrast to the Sensex's positive 5.31% return over the same period. The stock's 52-week high was Rs.1,383.15, highlighting the extent of the decline from its peak. This underperformance extends beyond the recent year, with the stock lagging behind the BSE500 index over the past three years, one year, and three months.
Financial Results and Profitability Metrics
The company’s quarterly financial results have reflected a challenging environment. Earnings per share (EPS) declined by 7.98% in the September quarter, contributing to a series of negative results over the last two quarters. The profit after tax (PAT) for the quarter stood at Rs.11.99 crore, representing a fall of 46.5% compared to the average of the previous four quarters.
Return on capital employed (ROCE) for the half-year period was recorded at 12.30%, one of the lowest levels in recent times. Additionally, the operating profit to interest ratio for the quarter was 4.12 times, indicating a modest cushion in servicing interest obligations but reflecting tighter margins than in prior periods.
Under the radar no more! This Large Cap from Cement is emerging from turnaround with solid fundamentals intact. Discover it while it's still relatively hidden!
- - Hidden turnaround gem
- - Solid fundamentals confirmed
- - Large Cap opportunity
Shareholding and Market Perception
Despite Agarwal Industrial Corporation’s sizeable market presence, domestic mutual funds hold no stake in the company. Given their capacity for detailed research and on-the-ground analysis, this absence of institutional investment may reflect a cautious stance towards the stock’s current valuation or business outlook.
Debt and Growth Indicators
On the debt front, the company maintains a relatively low Debt to EBITDA ratio of 1.26 times, suggesting a manageable level of leverage and a capacity to meet debt obligations without undue strain. This metric provides some stability amid the stock’s price pressures.
Net sales have exhibited a compound annual growth rate of 25.24%, indicating healthy long-term expansion in revenue. However, this growth has not translated into consistent profitability, as reflected in the recent earnings declines and subdued returns.
Valuation and Comparative Analysis
Agarwal Industrial Corporation’s return on capital employed (ROCE) stands at 11.9%, and the company’s enterprise value to capital employed ratio is approximately 1.5. These figures suggest a valuation that is attractive relative to historical averages and peer companies within the petrochemicals sector. Nevertheless, the stock is trading at a discount compared to its peers’ average historical valuations, which aligns with its recent price performance.
Profitability over the past year has contracted by 32.4%, further underscoring the challenges faced by the company in translating sales growth into bottom-line gains.
Holding Agarwal Industrial Corporation from Petrochemicals? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Key Metrics
To summarise, Agarwal Industrial Corporation’s stock has reached a 52-week low of Rs.745 after a period of sustained price decline. The company’s financial results over recent quarters have shown contraction in earnings and profitability ratios, while sales growth remains positive. The stock trades below all major moving averages, reflecting ongoing market pressure. Despite a low debt burden and attractive valuation metrics relative to peers, the stock’s performance has lagged significantly behind the broader market indices.
Meanwhile, the Sensex and mid-cap indices have demonstrated resilience, with the broader market maintaining a positive trend. This divergence highlights the specific challenges faced by Agarwal Industrial Corporation within the petrochemicals sector and the wider market environment.
Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
