The stock’s latest low comes as the broader market, represented by the Sensex, continues to show strength. The Sensex opened at 85,470.92 points, gaining 284.45 points (0.33%) and reached a new 52-week high of 85,333.19 during the trading session. This contrasts sharply with Crestchem’s performance, which has lagged behind both the sector and the market indices.
Over the last twelve months, Crestchem’s stock price has declined by 58.34%, a stark contrast to the Sensex’s gain of 9.89% and the BSE500’s return of 8.27% over the same period. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
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Examining Crestchem’s financial metrics reveals several factors contributing to the stock’s subdued performance. The company’s operating profits have shown a compound annual growth rate (CAGR) of 19.73% over the last five years, which, while positive, has not translated into stronger market performance. The company’s ability to service its debt is limited, with an average EBIT to interest ratio of 1.75, suggesting constrained financial flexibility.
In the half-year ended September 2025, Crestchem reported a return on capital employed (ROCE) of 32.96%, which is the lowest recorded in recent periods. Additionally, profits have declined by 36.3% over the past year, further reflecting challenges in maintaining earnings momentum. Despite these figures, the company’s return on equity (ROE) stands at 25%, indicating a reasonable level of profitability relative to shareholder equity.
The stock’s valuation metrics show a price-to-book value of 4.3, which is considered fair but trades at a premium compared to the average historical valuations of its peers in the Specialty Chemicals sector. This premium valuation, combined with the recent profit contraction and weak debt servicing capacity, may be factors influencing the stock’s current price level.
Ownership structure also provides some context, with majority shareholders classified as non-institutional investors. This may impact liquidity and trading dynamics in the stock.
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Comparing Crestchem’s performance to the broader market highlights the divergence in investor sentiment and stock behaviour. While the Sensex is trading above its 50-day moving average, supported by mega-cap stocks leading the gains, Crestchem remains under pressure. The stock’s 52-week high was Rs.329, underscoring the extent of the decline to the current low of Rs.108.8.
Today’s trading session saw Crestchem outperform its sector by 0.35%, a modest relative gain, yet this was insufficient to reverse the overall downward trend. The stock’s market capitalisation grade is rated at 4, reflecting its micro-cap status within the Specialty Chemicals industry.
In summary, Crestchem’s stock has reached a significant low point in its 52-week trading range, driven by a combination of subdued profit trends, valuation considerations, and financial ratios indicating limited debt servicing capacity. This contrasts with the broader market’s positive trajectory, as evidenced by the Sensex’s new highs and sector leadership by mega-cap stocks.
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