Chennai Ferrous Industries Ltd Falls to 52-Week Low of Rs.93

Stock Price Movement and Market Context

On 4 February 2026, Chennai Ferrous Industries Ltd’s share price fell by 3.33% to hit an intraday low of Rs.93, establishing its lowest level in the past year. This decline outpaced the sector’s performance, underperforming the Non - Ferrous Metals sector by 4.92% on the same day. 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.

In contrast, the broader market showed resilience, with the Sensex recovering sharply after a negative opening. The benchmark index closed at 83,776.72, a modest gain of 0.04%, and remains within 2.84% of its 52-week high of 86,159.02. Mega-cap stocks led the market rally, while Chennai Ferrous Industries Ltd’s performance remained subdued.

Financial Performance and Fundamental Assessment

The company’s financial metrics continue to reflect challenges. For the nine months ended recently, Chennai Ferrous reported a profit after tax (PAT) of Rs.2.38 crore, representing a decline of 36.87% compared to the previous period. Quarterly net sales stood at Rs.56.51 crore, down 19.79%, while the profit before depreciation, interest, and taxes (PBDIT) registered a loss of Rs.0.18 crore, marking the lowest level in recent quarters.

These figures contribute to the company’s current Mojo Score of 14.0 and a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating issued on 10 November 2025. The Market Cap Grade remains low at 4, reflecting the company’s limited market capitalisation relative to its peers.

Relative Performance and Valuation Metrics

Over the past year, Chennai Ferrous Industries Ltd has delivered a total return of -25.54%, significantly lagging the Sensex’s positive 6.62% return over the same period. The stock’s 52-week high was Rs.147.95, indicating a substantial decline of approximately 37% from that peak to the current low of Rs.93.

Despite the negative price performance, the company’s return on equity (ROE) stands at 6.5%, and it trades at a price-to-book value of 0.6, suggesting an attractive valuation on a book value basis. However, the stock is priced at a premium relative to the average historical valuations of its peers in the Non - Ferrous Metals sector, which may reflect market expectations or structural factors unique to the company.

Profitability has also deteriorated, with profits falling by 22.4% over the past year, compounding the stock’s downward trajectory. The company’s consistent underperformance against the BSE500 index over the last three annual periods further underscores the challenges faced.

Shareholding and Market Position

The majority shareholding remains with the promoters, maintaining control over the company’s strategic direction. The sector classification remains within Non - Ferrous Metals, a segment that has experienced mixed performance amid broader market fluctuations.

Technical Indicators and Market Sentiment

The stock’s position below all major moving averages indicates a bearish technical setup. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie above the current price, signalling sustained selling pressure. This technical picture aligns with the fundamental concerns highlighted by the company’s financial results and relative market performance.

Meanwhile, the broader market environment remains positive, with the Sensex showing resilience and mega-cap stocks leading gains. This divergence highlights the stock’s relative weakness within its sector and the wider market.

Summary of Key Metrics

To summarise, Chennai Ferrous Industries Ltd’s key data points as of 4 February 2026 are:

• New 52-week low price: Rs.93
• Day’s price change: -3.33%
• One-year return: -25.54%
• Mojo Score: 14.0 (Strong Sell, upgraded from Sell on 10 Nov 2025)
• PAT (9 months): Rs.2.38 crore, down 36.87%
• Net Sales (quarterly): Rs.56.51 crore, down 19.79%
• PBDIT (quarterly): Rs.-0.18 crore
• ROE: 6.5%
• Price to Book Value: 0.6
• Market Cap Grade: 4

The stock’s consistent underperformance against the benchmark indices and sector peers over multiple years, combined with declining profitability and a technical downtrend, have contributed to its current valuation and market position.

Conclusion

Chennai Ferrous Industries Ltd’s fall to a 52-week low of Rs.93 reflects a continuation of its subdued performance amid challenging financial results and market conditions. While the broader market has shown signs of strength, the stock remains under pressure, trading below all major moving averages and exhibiting a negative return profile over the past year. The company’s financial indicators, including declining PAT and net sales, alongside a Strong Sell Mojo Grade, underscore the cautious stance reflected in its current market valuation.

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