Stock Price Movement and Market Context
The stock recorded an intraday low of Rs.17, representing a sharp fall of 17.83% on the day. This decline contributed to a two-day consecutive losing streak, with the stock shedding 11.19% over this period. The day’s performance saw Chowgule Steamships underperform its sector by 8.27%, reflecting a notable divergence from the broader Transport Services industry trends.
Volatility was pronounced, with an intraday weighted average price volatility of 10.43%, underscoring the stock’s unsettled trading conditions. Furthermore, the share price remains below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained bearish momentum.
In contrast, the broader market exhibited resilience. The Sensex opened flat but gained 284.76 points to close at 85,544.12, a 0.42% increase, and remains within 0.72% of its 52-week high of 86,159.02. Mid-cap stocks led the rally, with the BSE Mid Cap index advancing 0.56%, highlighting a divergence between Chowgule Steamships’ performance and broader market strength.
Long-Term Performance and Valuation Metrics
Over the past year, Chowgule Steamships has delivered a negative return of 36.29%, significantly lagging behind the Sensex’s positive 7.01% gain. The stock’s 52-week high was Rs.33.85, indicating a near 50% decline from that peak to the current low.
The company’s Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell as of 4 February 2025, an upgrade from the previous Sell rating. This grading reflects concerns over the company’s fundamental and market metrics. The Market Cap Grade is rated 4, indicating a relatively modest market capitalisation compared to peers.
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Financial Health and Profitability Concerns
Chowgule Steamships’ financial profile reveals several areas of concern. The company reports a negative book value, indicating that liabilities exceed assets, which contributes to a weak long-term fundamental strength. Despite a reported annual net sales growth rate of 35.75% over the last five years, operating profit growth has stagnated at 0%, signalling challenges in converting revenue growth into profitability.
The company carries a high debt burden, with an average debt-to-equity ratio of 0 times, which suggests reliance on debt financing. This financial leverage adds to the risk profile, especially given the company’s negative EBITDA status, which points to earnings before interest, taxes, depreciation, and amortisation being in deficit.
Quarterly earnings per share (EPS) have also been under pressure, with the latest quarter reporting a low of Rs.0.04, reflecting subdued profitability. Over the past year, profits have declined by 65.2%, further emphasising the earnings contraction.
Comparative Performance and Market Position
Chowgule Steamships has underperformed not only the Sensex but also the BSE500 index over multiple time frames, including the last three years, one year, and three months. This below-par performance highlights persistent challenges in both the near and long term.
The company’s promoter group remains the majority shareholder, maintaining control over strategic decisions. However, this has not translated into improved market confidence or stock performance in recent periods.
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Summary of Key Metrics
To encapsulate, Chowgule Steamships Ltd’s stock has reached a new 52-week low of Rs.17, reflecting a significant decline from its 52-week high of Rs.33.85. The stock’s performance has been marked by high volatility and consistent underperformance relative to sector peers and broader market indices.
Financially, the company faces challenges with a negative book value, flat operating profit growth despite sales increases, and a negative EBITDA position. Profitability metrics such as EPS have weakened, and the company’s debt profile adds to its risk considerations. These factors collectively underpin the current Strong Sell Mojo Grade assigned to the stock.
While the broader market and mid-cap segments have shown strength, Chowgule Steamships remains under pressure, trading below all major moving averages and continuing its downward trajectory.
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