Stock Performance and Market Context
On the day the new low was recorded, Banswara Syntex opened with a gap down of -7.77%, touching an intraday low of Rs.93.2 before recovering slightly to a high of Rs.103.2, reflecting a 2.13% gain from the day’s low. However, the stock underperformed its sector, which gained 2.59%, by -0.32%. Over the last 20 trading days, the stock exhibited erratic behaviour, missing trading on one occasion, indicating some volatility and uncertainty among market participants.
Technical indicators show the stock trading above its 5-day moving average but below its 20-day, 50-day, 100-day, and 200-day moving averages, signalling a bearish trend in the medium to long term. This contrasts with the broader market, where the Sensex rose by 0.5% to close at 82,264.07, approaching its 52-week high of 86,159.02, just 4.73% away.
Financial Metrics and Valuation
Banswara Syntex’s financial profile reveals several areas of concern. The company’s Debt to EBITDA ratio stands at a high 3.11 times, indicating a relatively low capacity to service its debt obligations. This is compounded by a debt-equity ratio of 0.90 times as of the half-year mark, the highest recorded for the company, suggesting increased leverage.
Profitability metrics also reflect subdued performance. The company’s net sales have grown at a modest annual rate of 7.87% over the past five years, while operating profit has increased at 12.83% annually. However, the latest nine-month period ending September 2025 showed a decline in profit after tax (PAT) by -20.79%, amounting to Rs.11.58 crores. Cash and cash equivalents were at a low Rs.9.79 crores, indicating limited liquidity buffers.
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Relative Performance and Sector Comparison
Over the past year, Banswara Syntex’s stock has declined by 16.00%, significantly underperforming the Sensex, which gained 8.33% over the same period. The stock has also lagged behind the BSE500 index across one-year, three-year, and three-month timeframes, highlighting persistent underperformance relative to broader market benchmarks.
Within the garments and apparels sector, the company’s stock has not kept pace with sectoral gains. While the textile sector advanced by 2.59% on the day the stock hit its low, Banswara Syntex’s shares fell, underscoring a divergence from sector trends.
Valuation and Efficiency Metrics
Despite the challenges, the company’s return on capital employed (ROCE) stands at 5.3%, which, while modest, contributes to a valuation that some may consider attractive. The enterprise value to capital employed ratio is 0.8, indicating the stock is trading at a discount compared to its peers’ historical averages. However, this valuation discount accompanies a decline in profits by 5.5% over the past year, reflecting ongoing pressures on earnings.
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Shareholding and Market Sentiment
The majority shareholding in Banswara Syntex Ltd remains with promoters, reflecting concentrated ownership. The company’s Mojo Score is 40.0, with a Mojo Grade of Sell as of 12 Nov 2025, downgraded from a previous Strong Sell rating. The market capitalisation grade is 4, indicating a relatively modest market cap within its sector.
Trading activity has been somewhat erratic, with the stock missing trading on one day out of the last 20, and showing a notable gap down on the day it hit the 52-week low. These factors suggest cautious sentiment among market participants.
Summary of Key Metrics
To summarise, Banswara Syntex Ltd’s stock has reached a new 52-week low of Rs.93.2, reflecting a decline of 16.00% over the past year. The company faces challenges in debt servicing with a Debt to EBITDA ratio of 3.11 times and a high debt-equity ratio of 0.90 times. Profitability has contracted recently, with PAT down by 20.79% in the latest nine months. Despite a valuation discount relative to peers, the stock’s performance has lagged both the sector and broader market indices.
The broader market environment remains positive, with the Sensex advancing and the textile sector gaining, highlighting the stock’s divergence from sectoral and market trends.
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