Stock Price Movement and Market Context
On 13 Feb 2026, CHD Chemicals Ltd’s share price declined by 6.61%, underperforming its sector by 7.03%. This drop pushed the stock to its lowest level in the past year, Rs.4.8, down from its 52-week high of Rs.8.19. The stock’s current trading price is 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 broader market benchmark, the Sensex, opened 772.19 points lower and was trading at 82,816.31, down 1.03%. The Sensex remains 4.04% below its 52-week high of 86,159.02 and is positioned below its 50-day moving average, although the 50DMA is still above the 200DMA, signalling mixed market momentum.
Financial Performance and Profitability Concerns
CHD Chemicals Ltd’s financial metrics reveal ongoing difficulties. The company has experienced a negative compound annual growth rate (CAGR) of -174.54% in operating profits over the last five years, reflecting a sharp deterioration in core earnings. Despite a modest 3% increase in profits over the past year, the stock has delivered a negative return of -26.83%, significantly underperforming the Sensex, which posted an 8.77% gain over the same period.
The company’s average return on equity (ROE) stands at a low 0.92%, indicating limited profitability relative to shareholders’ funds. Additionally, the debt servicing capacity is constrained, with a high Debt to EBITDA ratio of 8.94 times, suggesting elevated financial leverage and potential liquidity pressures.
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Trend Analysis and Relative Performance
The stock’s performance over the last three years has consistently lagged behind the BSE500 benchmark, reflecting persistent underperformance. The current Mojo Score for CHD Chemicals Ltd is 12.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 21 Jan 2025. This grading reflects the company’s weak long-term fundamentals and elevated risk profile.
Trading at valuations considered risky relative to its historical averages, the stock’s downward momentum was accentuated after two consecutive days of gains, signalling a reversal in short-term sentiment. The majority of the company’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics.
Sector and Industry Positioning
Operating within the miscellaneous sector and industry, CHD Chemicals Ltd faces challenges that have not been mirrored by broader market indices or sector peers. The sector itself has seen mixed performance, but CHD Chemicals’ specific financial and market indicators highlight company-specific issues rather than sector-wide trends.
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Recent Quarterly Results
The company reported flat results in the quarter ended September 2025, which did not provide any significant improvement in its financial trajectory. This stagnation in quarterly performance adds to the cautious outlook reflected in the stock’s price action and grading.
Summary of Key Metrics
To summarise, CHD Chemicals Ltd’s key financial and market indicators as of 13 Feb 2026 are:
- New 52-week low price: Rs.4.8
- 52-week high price: Rs.8.19
- One-year stock return: -26.83%
- Sensex one-year return: +8.77%
- Debt to EBITDA ratio: 8.94 times
- Average Return on Equity: 0.92%
- Mojo Score: 12.0 (Strong Sell)
- Market Cap Grade: 4
The combination of weak profitability, high leverage, and consistent underperformance against benchmarks has contributed to the stock’s decline to its current 52-week low.
Market Sentiment and Broader Implications
The broader market environment remains volatile, with the Sensex trading below its 50-day moving average but maintaining a positive longer-term trend as indicated by the 50DMA above the 200DMA. CHD Chemicals Ltd’s share price movement contrasts with this, reflecting company-specific factors rather than general market weakness.
Investors and market participants will continue to monitor the company’s financial disclosures and market behaviour closely, given the stock’s current valuation and risk profile.
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