Stock Price Movement and Market Context
On 12 Jan 2026, Avadh Sugar & Energy Ltd’s share price touched an intraday low of Rs.336.1, representing a 3.92% decline on the day and a 3.06% drop compared to the previous close. This marks the lowest price level for the stock in the past 52 weeks, down sharply from its high of Rs.586.35. The stock has been on a downward trajectory for three consecutive sessions, cumulatively losing 7.5% over this period. It has also underperformed its sector by 0.64% on the day.
The stock is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum. This contrasts with the broader market, where the Sensex recovered from an early negative opening to close marginally higher at 83,594.37, just 3.07% shy of its 52-week high of 86,159.02. Mega-cap stocks led the market gains, while Avadh Sugar & Energy Ltd’s performance remained subdued.
Financial Performance and Credit Metrics
The company’s financial indicators reveal ongoing pressures. Avadh Sugar & Energy Ltd reported a Profit Before Tax excluding other income (PBT LESS OI) of negative Rs.12.85 crores in the September 2025 quarter, a steep decline of 1590.79% compared to the prior period. Net profit after tax (PAT) also fell sharply to a loss of Rs.6.59 crores, down 894.0%. Operating profit before depreciation and interest (PBDIT) was recorded at Rs.17.90 crores, the lowest in recent quarters.
These results reflect a challenging earnings environment, with the company’s ability to generate profits under strain. Over the past five years, net sales have declined at an annualised rate of 1.06%, while operating profit has contracted by 3.60% annually. The company’s debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 2.92 times, indicating elevated leverage relative to earnings.
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Relative Performance and Market Positioning
Avadh Sugar & Energy Ltd’s stock has underperformed significantly relative to key benchmarks. Over the last year, the stock has delivered a negative return of 29.10%, in stark contrast to the Sensex’s positive 8.04% gain. The company has also lagged behind the BSE500 index in each of the past three annual periods, highlighting consistent underperformance within the broader market context.
Despite its size, the company holds a modest market capitalisation grade of 4 and a Mojo Score of 31.0, with a current Mojo Grade of Sell, downgraded from Strong Sell on 6 Nov 2025. Domestic mutual funds hold a negligible stake of just 0.03%, which may reflect limited institutional conviction in the stock at prevailing valuations.
Valuation and Efficiency Metrics
On the valuation front, Avadh Sugar & Energy Ltd presents a mixed picture. The company’s Return on Capital Employed (ROCE) stands at 10.4%, which is relatively attractive within the sugar sector. Additionally, the stock trades at an enterprise value to capital employed ratio of 0.8, indicating a discount compared to its peers’ historical averages. However, this valuation discount accompanies a decline in profitability, with profits falling by 26.8% over the past year.
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Summary of Key Concerns
The stock’s decline to Rs.336.1 reflects a combination of factors including weak quarterly earnings, declining sales and operating profits over the medium term, and a high leverage position that limits financial flexibility. The consistent underperformance relative to market benchmarks and sector peers further underscores the challenges faced by Avadh Sugar & Energy Ltd. While valuation metrics suggest some discount relative to peers, this is accompanied by deteriorating profitability and limited institutional interest.
Trading below all major moving averages and with a Mojo Grade of Sell, the stock remains under pressure amid a market environment where broader indices are showing resilience. The company’s financial and operational metrics continue to weigh on investor sentiment, as reflected in the recent price action and 52-week low.
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