Stock Price Movement and Market Context
On 29 Dec 2025, Bal Pharma Ltd’s stock price touched Rs.67.15, the lowest level recorded in the past year. The stock has been on a losing streak for three consecutive sessions, cumulatively falling by 2.9% during this period. Despite this decline, the stock’s day change was marginally positive at 0.46%, aligning with the Pharmaceuticals & Biotechnology sector’s overall performance today.
Technical indicators show the stock 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 opened flat and is currently trading slightly lower at 84,980.72 points, down 0.07%. Notably, the Sensex remains close to its 52-week high of 86,159.02, just 1.39% away, and is supported by bullish moving averages with the 50-day DMA above the 200-day DMA.
Long-Term Performance and Relative Comparison
Bal Pharma Ltd’s one-year performance starkly contrasts with the broader market benchmark. The stock has delivered a negative return of -40.55% over the last 12 months, while the Sensex has appreciated by 7.98% during the same period. The stock’s 52-week high was Rs.131.45, indicating a decline of nearly 49% from that peak. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the past three years, one year, and three months.
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Fundamental Metrics and Financial Health
Bal Pharma Ltd’s fundamental indicators reveal areas of concern that have contributed to the stock’s subdued performance. The company’s long-term Return on Capital Employed (ROCE) averages 9.24%, which is considered weak relative to industry standards. The half-year ROCE has further declined to 8.99%, underscoring challenges in generating efficient returns on invested capital.
Net sales growth has been modest, with an annualised rate of 8.78% over the past five years, reflecting limited expansion in revenue streams. Additionally, the company’s ability to service debt is constrained, as evidenced by a high Debt to EBITDA ratio of 4.53 times. This elevated leverage ratio indicates increased financial risk and pressure on cash flows.
Profitability metrics have also deteriorated. The company has reported negative results for four consecutive quarters, with Profit Before Tax Less Other Income (PBT LESS OI) for the latest quarter at a loss of Rs.0.40 crore, representing a steep decline of 125.64%. The operating profit to interest coverage ratio stands at a low 1.48 times, signalling limited buffer to meet interest obligations from operating earnings.
Valuation and Relative Standing
Despite the challenges, Bal Pharma Ltd’s valuation metrics suggest a degree of attractiveness. The stock trades at an Enterprise Value to Capital Employed ratio of 1.2, which is considered very attractive compared to its peers’ historical averages. This discount in valuation reflects the market’s cautious stance given the company’s recent financial results and risk profile.
Profitability has declined by approximately 11% over the past year, aligning with the negative stock returns. The majority shareholding remains with promoters, indicating stable ownership structure amid the stock’s price volatility.
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Summary of Key Ratings and Scores
MarketsMOJO assigns Bal Pharma Ltd a Mojo Score of 17.0, categorising it with a Strong Sell grade as of 28 May 2025, an upgrade from the previous Sell rating. The Market Cap Grade stands at 4, reflecting the company’s relatively modest market capitalisation within its sector. These assessments incorporate the company’s financial metrics, growth trends, and valuation parameters.
In summary, Bal Pharma Ltd’s stock has reached a significant 52-week low amid a backdrop of subdued financial performance, weak profitability, and elevated leverage. While the valuation metrics indicate a discount relative to peers, the company’s recent quarterly results and long-term growth rates have weighed on investor sentiment, contributing to the stock’s underperformance relative to the broader market and sector indices.
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