Stock Performance and Market Context
On 20 Feb 2026, Bajaj Hindusthan Sugar Ltd’s share price closed at Rs.15.5, down 1.71% on the day, underperforming the sugar sector by 1.38%. This marks the third consecutive day of losses, with the stock falling by 5.18% over this period. The current price is substantially below its 52-week high of Rs.29.62, representing a decline of nearly 47.7% from that peak.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This contrasts with the broader market, where the Sensex recovered sharply after an initial negative opening, gaining 542.22 points to close at 82,814.71, a 0.38% increase. The Sensex remains just 4.04% shy of its 52-week high of 86,159.02, supported by mega-cap stocks leading the rally.
Long-Term and Recent Financial Trends
Bajaj Hindusthan Sugar Ltd’s financial performance has been subdued over the longer term. The company’s net sales have contracted at a compound annual growth rate (CAGR) of -3.95% over the past five years. The most recent quarterly results for December 2025 showed net sales of Rs.1,380.44 crore, reflecting a decline of 6.46% compared to the previous period.
Profitability metrics remain under pressure, 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%, indicating challenges in generating returns from its capital base. Despite this, the enterprise value to capital employed ratio is relatively low at 0.7, suggesting the stock is trading at an attractive valuation compared to peers.
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Debt Burden and Shareholding Structure
One of the critical concerns for Bajaj Hindusthan Sugar Ltd is its high leverage. The company’s debt to EBITDA ratio stands at an elevated 22.71 times, indicating a significant debt servicing burden relative to earnings before interest, tax, depreciation, and amortisation. This level of indebtedness constrains financial flexibility and adds pressure on cash flows.
Additionally, 100% of promoter shares are pledged, which can exert further downward pressure on the stock price, especially in volatile or declining markets. This factor often raises caution among market participants regarding potential forced selling or liquidity constraints.
Comparative Performance and Market Position
Over the past year, Bajaj Hindusthan Sugar Ltd has delivered a negative return of 30.10%, significantly lagging behind the Sensex’s positive 9.35% return over the same period. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, highlighting persistent relative weakness.
Despite the challenging price performance, the company’s profits have risen by 67.4% over the past year, a notable improvement amid the broader difficulties. This divergence between profit growth and share price performance may reflect market concerns about sustainability and other financial metrics.
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Mojo Score and Ratings
Bajaj Hindusthan Sugar Ltd currently holds a Mojo Score of 23.0, categorised as a Strong Sell. This represents a downgrade from its previous Sell rating on 11 Jul 2025. The company’s market capitalisation grade is rated at 3, reflecting its mid-tier size within the market.
The downgrade to Strong Sell is driven by the company’s weak long-term fundamental strength, high leverage, and underwhelming financial returns. These factors collectively contribute to the cautious stance reflected in the Mojo grading system.
Summary of Key Metrics
To encapsulate the current state of Bajaj Hindusthan Sugar Ltd:
- New 52-week low price: Rs.15.5
- 52-week high price: Rs.29.62
- One-year stock return: -30.10%
- Sensex one-year return: +9.35%
- Net sales growth (5-year CAGR): -3.95%
- Debt to EBITDA ratio: 22.71 times
- ROCE: -0.5%
- Promoter share pledge: 100%
- Mojo Score: 23.0 (Strong Sell)
Market Environment and Sectoral Context
The sugar sector has faced a mixed environment, with fluctuating commodity prices and regulatory factors influencing company performances. Bajaj Hindusthan Sugar Ltd’s share price movement contrasts with the broader market’s resilience, as the Sensex approaches its 52-week high supported by mega-cap stocks.
While the company’s valuation metrics suggest a discount relative to peers, the combination of financial strain and share price weakness has kept the stock under pressure.
Conclusion
Bajaj Hindusthan Sugar Ltd’s fall to a 52-week low of Rs.15.5 underscores the challenges the company faces in terms of financial health, leverage, and market performance. Despite some improvement in profit figures, the stock continues to trade below all major moving averages and has underperformed both its sector and the broader market indices over multiple time frames. The high promoter share pledge and elevated debt levels remain key considerations in assessing the company’s current market standing.
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