Stock Price Movement and Market Context
On the day the stock hit its new low, it recorded a day change of 1.33%, outperforming its sector by 1.68%. Despite this relative outperformance, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. The broader market, represented by the Sensex, recovered from an initial negative opening to close 0.3% higher at 81,781.56 points, supported by gains in mega-cap stocks. However, the Sensex itself is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed technical signals.
Financial Performance and Valuation Metrics
Arrow Greentech’s one-year performance has been notably weak, with the stock declining by 37.26%, in stark contrast to the Sensex’s positive return of 8.49% over the same period. The stock’s 52-week high was Rs.816.15, highlighting the extent of the recent price erosion.
The company reported negative quarterly results in September 2025, with profit before tax (PBT) falling by 23.97% to Rs.18.65 crores and profit after tax (PAT) declining by 15.6% to Rs.15.74 crores. Return on capital employed (ROCE) for the half-year was at a low 31.99%, while return on equity (ROE) stood at 24.1%. Despite these returns, the stock’s price-to-book value ratio of 3.1 suggests an expensive valuation relative to its book value, although it is trading at a discount compared to its peers’ historical averages.
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Market Position and Shareholding
Despite its size, Arrow Greentech has attracted minimal interest from domestic mutual funds, which hold 0% of the company’s shares. This absence of institutional ownership may reflect cautious sentiment regarding the stock’s current price and business outlook. The company’s debt-to-equity ratio remains low, averaging zero, indicating a conservative capital structure with limited leverage.
Growth Trends and Sector Comparison
On a positive note, Arrow Greentech has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 57.90% and operating profit growing at 57.32%. However, these growth figures have not translated into improved profitability or stock performance over the past year. The packaging sector itself has seen mixed results, with some indices such as NIFTY MEDIA and NIFTY REALTY also hitting 52-week lows on the same day, reflecting broader sectoral pressures.
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Mojo Score and Analyst Ratings
Arrow Greentech’s Mojo Score currently stands at 23.0, categorising it as a Strong Sell. This represents a downgrade from its previous Sell rating on 13 Aug 2025. The company’s market capitalisation grade is 4, reflecting its mid-tier size within the packaging sector. These ratings incorporate the company’s recent financial results, valuation metrics, and market performance, signalling caution in the near term.
Summary of Key Financial Indicators
The company’s quarterly profit before tax of Rs.18.65 crores declined by nearly 24%, while PAT fell by 15.6%. Return on capital employed at 31.99% is at its lowest level, indicating reduced efficiency in generating returns from capital invested. The stock’s price-to-book ratio of 3.1, combined with a ROE of 24.1%, suggests that the market is pricing in expectations that may not be fully supported by recent earnings trends.
Comparative Market Performance
Over the past year, Arrow Greentech has underperformed significantly relative to the broader market. While the BSE500 index generated returns of 8.53%, the stock declined by 37.26%. This divergence highlights the challenges faced by the company in maintaining investor confidence amid profit contractions and valuation pressures.
Conclusion
Arrow Greentech Ltd’s fall to a 52-week low of Rs.420.05 reflects a combination of declining profits, valuation concerns, and subdued institutional interest. Despite robust sales and operating profit growth over the longer term, recent quarterly results and returns on capital have deteriorated, contributing to the stock’s weak performance. The company’s conservative debt profile and sectoral context provide some stability, but the current market rating and technical indicators suggest continued caution.
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