Stock Price Movement and Market Context
The stock’s latest low price of Rs.13.91 represents a sharp fall from its 52-week high of Rs.23.64, reflecting a year-long decline of 41.11%. This contrasts starkly with the broader market, where the Sensex has delivered a positive return of 5.37% over the same period. On the day of the new low, C J Gelatine underperformed its sector by 3.94%, closing with a day change of -4.07%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
Financial Performance and Fundamental Assessment
Over the past five years, the company’s operating profit growth has stagnated, registering an annual growth rate of 0%. This lack of expansion in core profitability has contributed to a weak long-term fundamental profile. The company’s return on equity (ROE) remains negative, reflecting reported losses and limited shareholder value creation. Additionally, the return on capital employed (ROCE) stands at a modest 4.1%, indicating subdued efficiency in generating returns from capital investments.
Debt Profile and Capital Structure
A notable concern is the company’s high leverage, with a debt-to-equity ratio of 5.01 times. This elevated level of debt places pressure on financial flexibility and increases risk, especially in a challenging business environment. The average debt-to-equity ratio over recent years remains high, underscoring persistent reliance on borrowed funds. Despite this, the company’s enterprise value to capital employed ratio is relatively low at 1.1, suggesting an attractive valuation compared to peers, albeit within the context of financial strain.
Transformation in full progress! This Micro Cap from Auto Ancillary just achieved sustainable profitability after tough times. Be early to witness this powerful comeback story!
- - Sustainable profitability reached
- - Post-turnaround strength
- - Comeback story unfolding
Relative Performance and Market Positioning
C J Gelatine Products Ltd has consistently underperformed the BSE500 index over the last three annual periods, reflecting challenges in maintaining competitive positioning within the Specialty Chemicals sector. The stock’s 41.11% negative return over the past year is accompanied by a 59% decline in profits, highlighting the financial pressures faced by the company. Despite these setbacks, the stock trades at a discount relative to the historical valuations of its peers, which may reflect market concerns over its financial health and growth prospects.
Shareholding and Governance
The majority shareholding remains with the company’s promoters, indicating concentrated ownership. This structure can influence strategic decisions and capital allocation, particularly in a micro-cap context where promoter influence is often significant.
C J Gelatine Products Ltd or something better? Our SwitchER feature analyzes this micro-cap Specialty Chemicals stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Market Environment and Broader Indices
On the day the stock hit its 52-week low, the broader market displayed resilience. The Sensex, after opening 167.26 points lower, rebounded sharply by 1,110.78 points to trade at 81,666.46, a gain of 1.17%. Mega-cap stocks led this recovery, although the Sensex remains below its 50-day moving average. The 50-day moving average itself is positioned above the 200-day moving average, signalling a generally positive medium-term trend for the benchmark. In contrast, C J Gelatine’s persistent weakness highlights its divergence from broader market strength.
Summary of Ratings and Scores
The company’s Mojo Score stands at 23.0, with a Mojo Grade of Strong Sell as of 19 Jan 2026, downgraded from a previous Sell rating. The Market Cap Grade is 4, reflecting its micro-cap status and associated liquidity considerations. These ratings underscore the cautious stance reflected in the stock’s recent price action and fundamental metrics.
Conclusion
C J Gelatine Products Ltd’s decline to a 52-week low of Rs.13.91 encapsulates a period of sustained underperformance, marked by weak profitability growth, high leverage, and negative returns to shareholders. While the stock’s valuation metrics suggest a discount relative to peers, the financial and operational indicators point to ongoing challenges within the Specialty Chemicals sector. The stock’s divergence from broader market gains further emphasises the difficulties faced by the company in recent periods.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
