Stock Price Movement and Market Context
On 4 February 2026, Bengal & Assam Company Ltd’s stock touched an intraday low of Rs.5925, representing a 2.89% drop during the trading session. Despite this, the stock managed to close with a modest gain of 1.39%, outperforming its sector by 0.93%. This marks the second consecutive day of gains, with a cumulative return of 1.41% over this period. However, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend.
In comparison, the Sensex opened lower at 83,252.06, down 487.07 points (-0.58%), and was trading near 83,661.98 at the time of reporting, a marginal decline of 0.09%. The Sensex remains close to its 52-week high of 86,159.02, just 2.98% away, and trades below its 50-day moving average, though the 50DMA remains above the 200DMA, signalling mixed market momentum.
Performance Over the Past Year
Over the last 12 months, Bengal & Assam Company Ltd has underperformed significantly, with a total return of -27.47%, contrasting sharply with the Sensex’s positive return of 6.42% and the broader BSE500 index’s 7.47% gain. The stock’s 52-week high was Rs.9200, highlighting the extent of the decline to the current low of Rs.5925.
This underperformance is further reflected in the company’s financial results, where net sales have contracted at an annual rate of -25.37%, and operating profit has decreased by -3.85%. Profit after tax (PAT) has also declined by 23.6% over the past year, despite some quarterly improvements.
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Fundamental Strengths Amidst Price Decline
Despite the recent price weakness, Bengal & Assam Company Ltd exhibits some robust fundamental metrics. The company maintains a strong long-term return on equity (ROE) averaging 14.28%, signalling efficient capital utilisation. The latest quarterly results show a PAT of Rs.218.89 crores, which has grown by 71.7% compared to previous quarters. Net sales for the quarter reached a record Rs.642.38 crores, while profit before depreciation, interest, and taxes (PBDIT) hit Rs.191.12 crores, also the highest recorded.
Valuation metrics suggest the stock is trading at a discount relative to its peers, with a price-to-book value ratio of 0.7 and an ROE of 8, indicating a fair valuation level. This discount may reflect market caution given the company’s recent sales contraction and profit decline over the past year.
Market Participation and Institutional Interest
Institutional participation remains limited, with domestic mutual funds holding a mere 0.01% stake in Bengal & Assam Company Ltd. Given the capacity of mutual funds to conduct detailed research, this small holding may indicate a cautious stance towards the company’s current valuation or business outlook.
The company’s market capitalisation grade stands at 3, reflecting its mid-tier size within the NBFC sector. The recent downgrade in the Mojo Grade from Hold to Sell on 20 October 2025, with a current Mojo Score of 40.0, underscores the challenges faced by the stock in regaining investor confidence.
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Summary of Key Financial and Market Indicators
Bengal & Assam Company Ltd’s stock performance over the past year has been subdued, with a 27.47% decline contrasting with positive market returns. The company’s net sales and operating profits have contracted, while quarterly results show some improvement in PAT and PBDIT. The stock trades below all major moving averages, reflecting ongoing downward momentum.
Institutional interest remains minimal, and the company’s Mojo Grade downgrade to Sell highlights the cautious market sentiment. Nonetheless, the company’s strong ROE and fair valuation metrics provide a nuanced view of its financial health amid the price decline.
Technical and Valuation Overview
The stock’s current trading below its 5-day through 200-day moving averages suggests a persistent bearish trend. The intraday low of Rs.5925 marks a critical support level, representing the lowest price point in the past 52 weeks. This level is significantly below the 52-week high of Rs.9200, indicating a substantial retracement.
Valuation ratios such as the price-to-book value of 0.7 and an ROE of 8 suggest the stock is priced attractively relative to its peers, though this is tempered by the company’s recent sales and profit declines. The market cap grade of 3 places the company in a moderate size category within the NBFC sector.
Sector and Market Comparison
Within the Non Banking Financial Company sector, Bengal & Assam Company Ltd’s performance has lagged behind the broader market indices. While the BSE500 index has delivered a 7.47% return over the past year, the stock’s negative return of -27.47% highlights its relative underperformance. The Sensex’s proximity to its 52-week high contrasts with the stock’s new low, underscoring sector-specific and company-specific pressures.
Conclusion
Bengal & Assam Company Ltd’s stock reaching a 52-week low of Rs.5925 reflects a combination of subdued sales growth, profit contraction, and limited institutional participation. While quarterly results show some positive trends in profitability, the overall market sentiment remains cautious. The stock’s valuation metrics and return on equity indicate underlying financial strength, yet the persistent trading below key moving averages signals ongoing challenges in price recovery.
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