Stock Performance and Market Context
On 24 Feb 2026, Bajaj Hindusthan Sugar Ltd’s share price fell by 1.42% during the trading session, closing at Rs.15.2, the lowest level seen in the past year. This decline extends a losing streak spanning five consecutive trading days, during which the stock has shed 7.25% of its value. The stock’s performance today also lagged behind the sugar sector by 0.69%, signalling relative weakness within its industry group.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the sustained bearish momentum. This technical positioning highlights the absence of short-term or medium-term price support levels.
In contrast, the broader market benchmark, the Sensex, experienced a decline of 486.61 points (-0.87%) to close at 82,565.93, following a negative opening. Despite this, the Sensex remains 4.35% below its 52-week high of 86,159.02, and its 50-day moving average is positioned above the 200-day moving average, indicating a more resilient market backdrop compared to Bajaj Hindusthan’s stock.
Long-Term Performance and Relative Weakness
Over the past year, Bajaj Hindusthan Sugar Ltd’s stock has delivered a negative return of 28.42%, a stark contrast to the Sensex’s positive 10.89% gain over the same period. This underperformance extends beyond the last 12 months, with the stock also lagging the BSE500 index across one-year, three-year, and three-month time frames. Such persistent underperformance points to structural challenges impacting the company’s market valuation.
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Financial Metrics and Fundamental Assessment
Bajaj Hindusthan Sugar Ltd’s financial fundamentals have exhibited signs of strain over recent years. The company’s net sales have contracted, with the latest quarterly figure reported at Rs.1,380.44 crores, reflecting a decline of 6.46%. Over the last five years, the company’s net sales have registered a compound annual growth rate (CAGR) of -3.95%, indicating a shrinking revenue base.
Profitability metrics remain subdued, with the company reporting losses that have resulted in a negative return on equity (ROE). The return on capital employed (ROCE) stands at -0.5%, further highlighting challenges in generating returns from invested capital. Despite these figures, the company’s valuation metrics suggest an attractive entry point, with an enterprise value to capital employed ratio of 0.7, which is below the average historical valuations of its peers.
Debt servicing capacity is a notable concern, as Bajaj Hindusthan Sugar Ltd carries a high debt-to-EBITDA ratio of 22.71 times. This elevated leverage ratio points to significant financial obligations relative to earnings before interest, taxes, depreciation, and amortisation, potentially constraining financial flexibility.
Additionally, promoter shareholding is fully pledged, which can exert downward pressure on the stock price in volatile or declining markets, as pledged shares may be subject to liquidation or margin calls.
Sector and Peer Comparison
Within the sugar industry, Bajaj Hindusthan Sugar Ltd’s performance contrasts with peers that have maintained more stable financial profiles and valuations. The stock’s Mojo Score currently stands at 23.0, categorised as a Strong Sell, a downgrade from its previous Sell rating as of 11 Jul 2025. The company’s market capitalisation grade is rated 3, reflecting its mid-tier size within the sector.
While the stock has experienced a 28.42% decline over the past year, it is noteworthy that reported profits have increased by 67.4% during the same period. This divergence between profit growth and share price performance may reflect market concerns over sustainability, leverage, and other risk factors.
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Summary of Key Concerns
The stock’s fall to Rs.15.2 represents a culmination of several factors including weak revenue growth, negative profitability indicators, high leverage, and full promoter share pledging. These elements have contributed to a diminished market confidence and sustained price weakness. The company’s underperformance relative to the Sensex and its sector peers further emphasises the challenges it faces in regaining investor favour.
Despite the current valuation discount, the stock remains below all major moving averages, signalling continued caution among market participants. The broader market environment, while showing some resilience, has not provided sufficient support to counterbalance the company-specific headwinds.
Conclusion
Bajaj Hindusthan Sugar Ltd’s stock reaching a 52-week low of Rs.15.2 reflects a complex interplay of subdued financial results, elevated debt levels, and market dynamics. The company’s recent downgrade to a Strong Sell rating and its low Mojo Score underscore the prevailing market sentiment. While the stock’s valuation metrics indicate a discount relative to peers, the prevailing financial and market conditions have maintained pressure on its share price throughout the past year.
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