Amarjothi Spinning Mills Falls to 52-Week Low of Rs.138.05

Stock Price Movement and Market Context

On 9 December 2025, Amarjothi Spinning Mills recorded an intraday low of Rs.138.05, representing a decline of 2.16% on the day. Despite this, the stock outperformed its sector by 2.5% during the trading session and showed signs of a short-term reversal after two consecutive days of falls. However, the share price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained bearish trend.

In contrast, the broader market index, Sensex, opened lower by 359.82 points but is currently trading at 84,664.68, down 0.51% for the day. The Sensex remains close to its 52-week high of 86,159.02, just 1.77% away, and is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. This divergence highlights the relative underperformance of Amarjothi Spinning Mills compared to the overall market.

Performance Over the Past Year

Over the last twelve months, Amarjothi Spinning Mills has recorded a total return of -31.43%, significantly lagging behind the Sensex’s positive return of 3.85% during the same period. The stock’s 52-week high was Rs.239.70, underscoring the extent of the decline to the current low price. This underperformance is consistent with the company’s trend over the past three years, where it has also trailed the BSE500 benchmark in each annual period.

Financial Metrics and Valuation

Amarjothi Spinning Mills’ financial data reveals a subdued growth trajectory. The company’s operating profits have shown a compound annual growth rate (CAGR) of 11.46% over the last five years, indicating modest expansion in earnings before interest and taxes. The average return on equity (ROE) stands at 7.23%, reflecting limited profitability relative to shareholders’ funds.

Recent half-yearly results show net sales of Rs.99.53 crore, which have declined by 24.72% compared to the previous period. Profit figures have also contracted by 9.3% over the past year, further illustrating the challenges faced in maintaining revenue and earnings growth.

Despite these figures, the stock’s valuation metrics suggest it is trading at a discount relative to its peers. The price-to-book value ratio is approximately 0.5, which is considered attractive in comparison to the average historical valuations within the garments and apparels sector. The company’s ROE of 6.2% aligns with this valuation, indicating a market price that reflects subdued profitability expectations.

Shareholding and Sector Position

The majority ownership of Amarjothi Spinning Mills remains with its promoters, maintaining a concentrated shareholding structure. The company operates within the garments and apparels industry, a sector that has experienced varied performance across different players amid changing consumer demand and supply chain dynamics.

Summary of Key Indicators

To summarise, Amarjothi Spinning Mills is currently trading at Rs.138.05, its lowest level in the past year. The stock’s performance over the last twelve months shows a decline of 31.43%, contrasting with the Sensex’s positive return of 3.85%. The company’s net sales for the latest six months stand at Rs.99.53 crore, reflecting a contraction of nearly 25%. Profitability metrics such as ROE remain modest, and the stock price is below all major moving averages, signalling continued downward momentum.

Meanwhile, the broader market environment remains relatively stable, with the Sensex trading near its 52-week high and supported by bullish moving averages. This divergence highlights the specific challenges faced by Amarjothi Spinning Mills within its sector and the wider market.

Technical and Market Observations

The stock’s position below the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages indicates a persistent bearish trend. The recent intraday low of Rs.138.05 marks a critical support level that investors and market watchers will monitor closely. The slight gain following two days of decline suggests some short-term buying interest, but the overall trend remains subdued.

In the context of the garments and apparels sector, Amarjothi Spinning Mills’ valuation at a price-to-book ratio of 0.5 is lower than the sector average, which may reflect market caution given the company’s recent financial performance. The company’s promoter holding continues to be the dominant shareholding group, maintaining control over strategic decisions.

As the stock navigates this 52-week low, the market will continue to assess the company’s financial results and sector dynamics to gauge its position relative to peers and broader indices.

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