Bodal Chemicals Ltd Stock Hits 52-Week Low Amid Continued Downtrend

Recent Price Movement and Market Context

On 21 Jan 2026, Bodal Chemicals Ltd’s stock price touched an intraday low of Rs.46.01, representing a 3.64% decline on the day and a 2.24% drop compared to the previous close. This new low comes after the stock has consecutively fallen for four trading sessions, accumulating a loss of 8.92% over this period. The stock’s performance today also lagged behind the Dyes and Pigments sector by 0.3%, signalling relative weakness within its industry group.

The broader market environment has been challenging, with the Sensex opening 385.82 points lower and closing down by 272.07 points at 81,522.58, a decline of 0.8%. The Sensex itself is experiencing a three-week consecutive fall, losing 4.94% in that timeframe. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating some underlying medium-term support for the benchmark index.

Technical Indicators and Moving Averages

Bodal Chemicals is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness across technical indicators highlights the stock’s current bearish momentum and lack of short-term support levels. The 52-week high for the stock was Rs.81.50, underscoring the extent of the decline from its peak to the current low of Rs.46.01, a drop of approximately 43.5% over the past year.

Long-Term Performance and Financial Metrics

Over the last year, Bodal Chemicals has delivered a negative return of 27.65%, significantly underperforming the Sensex, which posted a positive 7.50% return in the same period. This underperformance extends beyond the last year, with the stock consistently lagging the BSE500 benchmark in each of the past three annual periods.

From a fundamental perspective, the company’s long-term financial strength remains subdued. The average Return on Capital Employed (ROCE) stands at 6.01%, reflecting modest efficiency in generating returns from its capital base. Net sales have grown at an annual rate of 10.26% over the past five years, indicating moderate top-line expansion but not at a pace that has translated into stronger market performance.

Debt servicing capacity is a notable concern, with a high Debt to EBITDA ratio of 4.91 times. This elevated leverage ratio suggests increased financial risk and pressure on the company’s ability to meet its debt obligations comfortably. The operating profit to interest coverage ratio for the latest quarter is at a low 1.15 times, further highlighting tight interest coverage.

Quarterly and Cash Flow Analysis

The company reported flat results in the quarter ending September 2025, with Profit Before Tax excluding other income (PBT less OI) falling sharply by 371.1% to a loss of Rs.14.35 crores compared to the previous four-quarter average. Operating cash flow for the year was recorded at Rs.113.78 crores, the lowest level observed, indicating constrained cash generation from core business activities.

Despite its size, domestic mutual funds hold no stake in Bodal Chemicals, which may reflect limited institutional confidence or a cautious stance on the stock’s valuation and business outlook.

Valuation and Profitability Considerations

On valuation metrics, Bodal Chemicals presents a very attractive profile with a ROCE of 4.8 and an Enterprise Value to Capital Employed ratio of 0.7, suggesting the stock is trading at a discount relative to its capital base. This valuation is lower than the average historical valuations of its peers in the dyes and pigments sector.

Interestingly, while the stock has declined by 27.65% over the past year, reported profits have surged by 2168.8%, resulting in a PEG ratio of zero. This disparity between profit growth and share price performance indicates a complex market perception of the company’s earnings quality and sustainability.

Market Sentiment and Ratings

Bodal Chemicals currently holds a Mojo Score of 26.0 and a Mojo Grade of Strong Sell, an upgrade from its previous Sell rating as of 7 Aug 2025. The market capitalisation grade is rated at 4, reflecting its mid-tier size within the sector. These ratings underscore the cautious stance adopted by rating agencies and market analysts based on the company’s financial and operational metrics.

The stock’s recent price action and fundamental indicators suggest that it remains under pressure, with limited short-term technical support and ongoing concerns about profitability and leverage. The company’s position within the dyes and pigments sector, which itself faces cyclical and competitive pressures, adds to the complexity of its market performance.

Summary of Key Data Points

• New 52-week low: Rs.46.01 (intraday low on 21 Jan 2026)

• Consecutive four-day decline with -8.92% returns

• Underperformance relative to sector and Sensex

• Average ROCE: 6.01%

• Annual net sales growth (5 years): 10.26%

• Debt to EBITDA ratio: 4.91 times

• Operating cash flow (yearly): Rs.113.78 crores (lowest)

• PBT less other income (quarterly): Rs.-14.35 crores (-371.1%)

• Operating profit to interest coverage (quarterly): 1.15 times

• Domestic mutual fund holding: 0%

• Mojo Grade: Strong Sell (upgraded from Sell)

• Market cap grade: 4

• PEG ratio: 0

• Profit growth (yearly): 2168.8%

The stock’s trajectory to a 52-week low reflects a combination of subdued financial performance, elevated leverage, and technical weakness. While valuation metrics indicate a discount relative to peers, the overall market sentiment remains cautious given the company’s recent earnings volatility and limited institutional participation.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →