Arex Industries Ltd Falls to 52-Week Low of Rs.121 Amidst Continued Downtrend

Stock Price Movement and Trading Activity

On 24 Feb 2026, Arex Industries Ltd’s share price opened with a gap down of -2.02%, settling at Rs.121, which also represented the day’s intraday low. The stock has been on a losing streak for the past two days, cumulatively falling by -6.92% during this period. Notably, the stock has traded erratically, missing trading on one day out of the last 20 sessions, which adds to the volatility concerns.

The share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum. The stock’s 52-week high stands at Rs.175, highlighting the extent of the decline over the past year.

Market Context and Sector Performance

The broader market environment has also been challenging. The Sensex opened lower by -242.12 points and closed down by -510.81 points at 82,541.73, a decline of -0.9%. Despite this, the Sensex remains within 4.38% of its 52-week high of 86,159.02. The index is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed signals for the broader market.

In comparison, Arex Industries Ltd has underperformed significantly over the last year, delivering a negative return of -23.88%, while the Sensex has gained 10.90% over the same period. This divergence underscores the stock’s relative weakness within the Garments & Apparels sector and the broader market.

Financial Performance and Valuation Metrics

Arex Industries Ltd’s financial metrics reveal a subdued performance over both the short and long term. The company has recorded a compound annual growth rate (CAGR) of 6.31% in net sales over the last five years, reflecting modest expansion in revenue. However, profitability metrics remain underwhelming, with an average Return on Equity (ROE) of 8.59%, indicating limited efficiency in generating profits from shareholders’ funds.

Quarterly results for December 2025 further highlight the challenges faced by the company. The Profit Before Depreciation, Interest, and Taxes (PBDIT) stood at Rs.1.52 crore, the lowest recorded in recent quarters. Operating profit to net sales ratio also declined to 11.70%, marking a trough in operational profitability. Profit Before Tax (PBT) excluding other income was a mere Rs.0.20 crore, underscoring the tight margins.

Over the past year, profits have contracted by -26.6%, compounding the negative returns of -23.88% generated by the stock. The company’s Return on Capital Employed (ROCE) is at 11.8%, which, coupled with an enterprise value to capital employed ratio of 1.5, suggests a valuation that is attractive relative to its capital base. Despite this, the stock trades at a discount compared to its peers’ average historical valuations, reflecting market concerns about its growth and profitability prospects.

Shareholding and Market Grade

The majority shareholding in Arex Industries Ltd is held by promoters, indicating concentrated ownership. The company’s Mojo Score currently stands at 17.0, with a Mojo Grade of Strong Sell as of 19 Jun 2025, an upgrade from the previous Sell rating. The market capitalisation grade is rated at 4, reflecting its micro-cap status within the Garments & Apparels sector.

Comparative Performance and Sectoral Context

When analysed against the BSE500 index, Arex Industries Ltd has underperformed consistently over multiple time frames, including the last three years, one year, and three months. This persistent underperformance highlights the stock’s relative weakness within the broader market and its sector peers.

The Garments & Apparels sector itself has experienced mixed trends, with some companies maintaining steady growth while others face headwinds. Arex Industries Ltd’s current valuation discount relative to peers may reflect the market’s cautious stance on its earnings trajectory and competitive positioning.

Trading Patterns and Price Stability

The stock’s recent trading pattern has been characterised by a lack of price range movement, with the share price opening and trading at Rs.121 today without significant intraday fluctuations. This absence of volatility may indicate subdued trading interest or a consolidation phase at this lower price level.

Given the stock’s position below all major moving averages and its recent consecutive declines, the technical outlook remains subdued. The gap down opening and the inability to recover intraday losses further reinforce the prevailing bearish sentiment.

Summary of Key Metrics

• New 52-week low: Rs.121
• 52-week high: Rs.175
• 1-year stock return: -23.88%
• Sensex 1-year return: +10.90%
• Mojo Score: 17.0 (Strong Sell)
• Market Cap Grade: 4
• ROE (avg): 8.59%
• ROCE: 11.8%
• Enterprise Value to Capital Employed: 1.5
• Quarterly PBDIT: Rs.1.52 crore (lowest)
• Operating Profit to Net Sales (Q): 11.70% (lowest)
• Quarterly PBT less Other Income: Rs.0.20 crore (lowest)

Overall, Arex Industries Ltd’s stock has experienced a notable decline to its 52-week low, reflecting a combination of subdued financial performance, valuation concerns, and broader market pressures. The stock’s trading below all key moving averages and its underperformance relative to the Sensex and sector peers underscore the challenges faced by the company in recent periods.

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