Stock Performance and Market Context
The stock opened sharply lower with a gap down of -3.3% and continued to trade in a narrow range of just Rs.0.15, ultimately hitting an intraday low of Rs.98.1. This marks a new 52-week low for Chennai Ferrous, underscoring the persistent downward pressure on its share price. Over the last two trading sessions, the stock has declined by -5.54%, underperforming its sector by -2.67% today alone.
Chennai Ferrous is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend. This contrasts with the broader market, where the Sensex, despite a recent three-week decline of -3.26%, remains approximately 3.85% below its 52-week high of 86,159.02 points.
Financial Metrics and Fundamental Assessment
The company’s financial performance continues to reflect challenges. For the nine months ended recently, Chennai Ferrous reported a Profit After Tax (PAT) of Rs.2.38 crores, representing a contraction of -36.87% year-on-year. Quarterly net sales have also fallen by -19.79% to Rs.56.51 crores, while the Profit Before Depreciation, Interest and Taxes (PBDIT) registered a loss of Rs.-0.18 crores, marking the lowest level in recent quarters.
This financial strain has contributed to a downgrade in the company’s Mojo Grade from Sell to Strong Sell as of 10 Nov 2025, with a current Mojo Score of 14.0. The Market Cap Grade remains low at 4, reflecting limited market capitalisation strength.
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Relative Performance and Valuation
Over the past year, Chennai Ferrous Industries Ltd has delivered a total return of -25.68%, significantly lagging the Sensex’s positive 7.63% return over the same period. This underperformance extends beyond the last year, with the stock consistently trailing the BSE500 index in each of the previous three annual periods.
Despite these challenges, the company’s return on equity (ROE) stands at a moderate 6.5%, and it trades at a price-to-book value of 0.7, which may be considered attractive from a valuation standpoint. However, the stock currently trades at a premium relative to the historical average valuations of its peers within the Non-Ferrous Metals sector.
Profitability has also declined over the past year, with profits falling by -22.4%, further reflecting the pressures on the company’s earnings profile.
Shareholding and Sectoral Position
The majority shareholding in Chennai Ferrous Industries Ltd remains with the promoters, maintaining a stable ownership structure. The company operates within the Non-Ferrous Metals industry, a sector that has experienced mixed performance amid broader market fluctuations and commodity price volatility.
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Summary of Key Indicators
To summarise, Chennai Ferrous Industries Ltd’s stock has reached a new 52-week low of Rs.98.1, reflecting ongoing pressures on its financial and market performance. The downgrade to a Strong Sell Mojo Grade highlights concerns regarding the company’s long-term fundamental strength, particularly in light of declining sales and profitability metrics.
The stock’s consistent underperformance relative to the Sensex and BSE500 indices over multiple years, combined with its current trading below all major moving averages, underscores the challenges faced by the company within its sector.
While valuation metrics such as price-to-book value and ROE offer some measure of attractiveness, these have not translated into positive returns or improved market sentiment in recent periods.
Market Environment
The broader market context also provides insight into the stock’s performance. The Sensex, after a flat opening, declined by -238.81 points (-0.33%) to close at 82,968.57 on 20 Jan 2026. This marked the index’s third consecutive weekly fall, with a cumulative loss of -3.26% over three weeks. Despite this, the Sensex remains relatively close to its 52-week high, contrasting with Chennai Ferrous’s significant share price decline.
Technical Indicators
Technically, the stock’s position below all key moving averages suggests a continuation of the downward trend in the near term. The narrow intraday trading range of Rs.0.15 on the day of the new low indicates limited volatility but persistent selling pressure.
Conclusion
Chennai Ferrous Industries Ltd’s fall to a 52-week low of Rs.98.1 reflects a combination of subdued financial results, sustained underperformance against benchmarks, and a challenging market environment. The downgrade to a Strong Sell rating and the company’s position below all major moving averages further illustrate the current difficulties faced by the stock within the Non-Ferrous Metals sector.
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