Bhagiradha Chemicals & Industries Ltd Falls to 52-Week Low of Rs.219.5

Stock Price Movement and Market Context

The stock recorded an intraday low of Rs.219.5, representing a 3.85% drop from its previous close, while the intraday high was Rs.234.6, up 2.76%. Over the last two trading sessions, Bhagiradha Chemicals has experienced a consecutive decline, losing 3.06% cumulatively. This underperformance is notable against the sector, as the stock lagged the Pesticides & Agrochemicals sector by 2.78% today.

Currently, the stock trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This contrasts with the broader market, where the Sensex opened 94.55 points lower and is trading at 84,594.98, down 0.12%. The Sensex remains 1.85% shy of its 52-week high of 86,159.02, with its 50-day moving average positioned above the 200-day moving average, signalling a generally positive market trend.

Financial Performance and Valuation Metrics

Bhagiradha Chemicals & Industries Ltd has faced challenges reflected in its financial results. The company has reported negative earnings for four consecutive quarters, with its profit after tax (PAT) for the nine months ending recently standing at Rs.8.60 crores, a decline of 53.18% year-on-year. Concurrently, interest expenses have increased by 59.53% to Rs.8.87 crores over the same period, exerting additional pressure on profitability.

Operating cash flow for the year is reported at a negative Rs.1.11 crores, the lowest in recent periods, highlighting cash generation difficulties. Return on capital employed (ROCE) remains subdued at 2.8%, while the enterprise value to capital employed ratio is elevated at 3.6, suggesting the stock is trading at a premium relative to its capital base despite the subdued returns.

Over the past year, the stock has delivered a total return of -25.51%, significantly underperforming the Sensex, which has gained 8.11% in the same timeframe. Profitability has also deteriorated, with net profits falling by 43.8% year-on-year. The company’s operating profit growth over the last five years has averaged 18.47% annually, which is considered modest in the context of sector peers.

Credit Profile and Debt Servicing

Despite the pressures on earnings and cash flow, Bhagiradha Chemicals maintains a relatively strong ability to service its debt obligations. The company’s debt to EBITDA ratio stands at a moderate 1.43 times, indicating manageable leverage levels. This metric suggests that while profitability has declined, the company’s debt burden remains within a sustainable range relative to its earnings before interest, tax, depreciation, and amortisation.

However, the increase in interest expenses by nearly 60% over the last nine months warrants attention, as it may impact future financial flexibility if earnings do not improve.

Valuation and Market Perception

Bhagiradha Chemicals is currently rated as a Strong Sell with a Mojo Score of 21.0, an upgrade from its previous Sell rating as of 5 August 2025. The company holds a Market Cap Grade of 3, reflecting its mid-cap status within the Pesticides & Agrochemicals sector. The stock’s valuation is considered expensive relative to its peers, trading at a premium despite its recent financial performance.

Notably, domestic mutual funds hold no stake in the company, which may reflect a cautious stance given the company’s recent earnings trajectory and valuation metrics. This absence of institutional ownership contrasts with the broader market environment, where mutual funds actively participate in mid-cap stocks with stronger fundamentals.

Historical Price Performance

The stock’s 52-week high was Rs.329.95, indicating a substantial decline of approximately 33.5% from that peak to the current 52-week low of Rs.219.5. This wide price range over the past year underscores the volatility experienced by Bhagiradha Chemicals shares. The stock’s underperformance relative to the BSE500 index, which has returned 5.35% over the last year, further highlights the challenges faced by the company in maintaining investor confidence and market valuation.

While the broader Pesticides & Agrochemicals sector has shown resilience, Bhagiradha Chemicals’ relative weakness is evident in its price action and financial metrics.

Summary of Key Metrics

To summarise, Bhagiradha Chemicals & Industries Ltd’s recent fall to a 52-week low of Rs.219.5 reflects a combination of subdued earnings, increased interest costs, negative cash flow, and valuation concerns. The stock’s Mojo Grade of Strong Sell and low Mojo Score of 21.0 reinforce the cautious outlook based on current fundamentals. Despite a manageable debt profile, the company’s profitability and cash generation remain areas of concern.

Investors observing the stock should note the divergence between Bhagiradha Chemicals’ performance and broader market indices, as well as the absence of domestic mutual fund participation, which may indicate a preference for other opportunities within the sector.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →