Stock Performance and Market Context
On 12 Jan 2026, Amarjothi Spinning Mills Ltd’s share price declined by 2.47% to hit an intraday low of Rs.134.4, the lowest level recorded in the past year. This marks the seventh consecutive day of losses, with the stock delivering a cumulative return of -7.02% over this period. The stock’s performance today also lagged behind the Garments & Apparels sector by 0.99%, underscoring its relative weakness within the industry.
The stock 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 highlights the challenges the stock faces in regaining upward traction in the near term.
In comparison, the broader market has experienced a decline, with the Sensex falling by 467.25 points (-0.73%) to close at 82,968.06. Despite this, the Sensex remains within 3.85% of its 52-week high of 86,159.02, indicating a more resilient performance relative to Amarjothi Spinning Mills Ltd.
Financial Performance and Valuation Metrics
Amarjothi Spinning Mills Ltd’s financial results have reflected subdued growth and profitability pressures. The company reported net sales of Rs.46.99 crores in the quarter ended September 2025, representing a decline of 12.14% compared to the previous period. This contraction in sales has contributed to a reduction in profitability, with operating profits exhibiting a compound annual growth rate (CAGR) of just 11.46% over the last five years, a modest figure relative to industry peers.
The average Return on Equity (ROE) stands at 7.23%, indicating limited profitability generated per unit of shareholders’ funds. More recently, the ROE has been recorded at 6.2%, which, while modest, is accompanied by a very attractive valuation with a Price to Book Value ratio of 0.5. This suggests the stock is trading at a discount compared to its historical valuations and peer group averages.
Despite this valuation appeal, the stock’s performance over the past year has been disappointing, with a total return of -29.13%, significantly underperforming the Sensex’s positive return of 7.23% over the same period. Furthermore, the company’s profits have declined by 9.3% year-on-year, reflecting ongoing pressures on earnings.
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Long-Term Trends and Shareholder Structure
Over the last three years, Amarjothi Spinning Mills Ltd has consistently underperformed the BSE500 benchmark, reflecting persistent challenges in maintaining competitive returns. The stock’s 52-week high was Rs.203, indicating a substantial decline of approximately 33.8% from that peak to the current 52-week low.
The company’s market capitalisation grade is rated 4, reflecting its micro-cap status within the Garments & Apparels sector. The Mojo Score stands at 26.0, with a Mojo Grade of Strong Sell as of 6 Jan 2026, an upgrade from the previous Sell rating. This grading reflects the assessment of the company’s fundamental and market performance metrics.
Promoters remain the majority shareholders, maintaining control over the company’s strategic direction. This concentrated ownership structure may influence corporate decisions and long-term planning.
Sector and Market Comparison
Within the Garments & Apparels sector, Amarjothi Spinning Mills Ltd’s valuation metrics suggest it is trading at a discount relative to peers. However, this discount accompanies weaker financial performance and returns, which have weighed on investor sentiment and share price.
The broader market environment has been mixed, with the Sensex trading below its 50-day moving average but with the 50-day average still above the 200-day average, indicating a cautiously positive medium-term trend for the benchmark index. Amarjothi Spinning Mills Ltd’s divergence from this trend highlights its relative weakness.
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Summary of Key Metrics
To summarise, Amarjothi Spinning Mills Ltd’s key metrics as of January 2026 are as follows:
- 52-week low price: Rs.134.4
- 52-week high price: Rs.203
- One-year stock return: -29.13%
- Sensex one-year return: +7.23%
- Net sales (Q2 FY26): Rs.46.99 crores, down 12.14%
- Operating profit CAGR (5 years): 11.46%
- Average ROE: 7.23%
- Price to Book Value: 0.5
- Mojo Score: 26.0 (Strong Sell)
- Market Cap Grade: 4
These figures illustrate the stock’s current valuation and performance challenges within the context of its sector and broader market environment.
Conclusion
Amarjothi Spinning Mills Ltd’s decline to a 52-week low of Rs.134.4 reflects a combination of subdued sales growth, modest profitability, and consistent underperformance relative to benchmarks. While the stock trades at an attractive valuation compared to peers, its financial metrics and recent price trends highlight ongoing pressures. The company’s position within the Garments & Apparels sector and its micro-cap status contribute to its market dynamics amid a fluctuating broader market backdrop.
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