Daikaffil Chemicals India Ltd Falls to 52-Week Low of Rs 46

Stock Price Movement and Market Context

On 20 Feb 2026, Daikaffil Chemicals India Ltd’s share price declined by 2.54%, closing at Rs.46, the lowest level recorded in the past year. The stock underperformed its specialty chemicals sector by 2.53% on the day. Intraday, the share price fluctuated between a high of Rs.48.38 and the low of Rs.46, reflecting volatility amid broader market gains.

In contrast, the Sensex demonstrated resilience, recovering sharply from an initial drop of 225.65 points to close 618.46 points higher at 82,890.95, a 0.48% gain. The benchmark index remains within 3.94% of its 52-week high of 86,159.02, supported by mega-cap stocks leading the rally. Despite this positive market environment, Daikaffil Chemicals has continued to lag behind.

Technical Indicators Signal Continued Weakness

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This technical positioning suggests that the stock remains under pressure and has yet to find a stable support level.

Long-Term Performance and Fundamental Concerns

Over the past year, Daikaffil Chemicals India Ltd’s stock has declined by a substantial 73.59%, a stark contrast to the Sensex’s positive return of 9.45% and the BSE500’s 12.01% gain. This underperformance highlights the stock’s challenges in keeping pace with the broader market and its sector.

The company’s 52-week high was Rs.213.5, underscoring the magnitude of the decline to the current low of Rs.46. This represents a drop of nearly 79.5% from its peak price within the last year.

Financially, the company has exhibited weak long-term fundamentals. Operating profit has deteriorated at an annualised rate of -194.16% over the last five years, reflecting persistent difficulties in generating sustainable earnings growth. The company is also reporting operating losses, which have contributed to a weak long-term fundamental strength rating.

Debt servicing capacity remains a concern, with an average EBIT to interest ratio of -2.57, indicating that earnings before interest and tax are insufficient to cover interest expenses. This metric points to financial stress and heightened risk for creditors and investors alike.

Profitability and Valuation Risks

Despite the negative stock price trajectory, the company’s profits have increased by 26.5% over the past year. However, this improvement has not translated into positive market sentiment or share price appreciation. The stock is considered risky relative to its historical valuation averages, reflecting investor caution amid ongoing financial challenges.

Daikaffil Chemicals India Ltd’s Mojo Score stands at 17.0, with a Mojo Grade of Strong Sell as of 7 Apr 2025, an upgrade from the previous Sell rating. This grading reflects the company’s deteriorated financial health and weak market positioning within the specialty chemicals sector.

Recent Sales Growth and Shareholding Structure

On a more positive note, the company reported net sales of Rs.7.51 crores over the latest six-month period, representing a robust growth rate of 114.57%. This sales expansion indicates some operational traction despite broader profitability and valuation concerns.

The majority shareholding remains with the promoters, which may provide some stability in ownership but has not yet translated into improved market performance or investor confidence.

Summary of Key Metrics

To summarise, Daikaffil Chemicals India Ltd’s current market capitalisation is graded at 4, reflecting its relatively small size within the specialty chemicals sector. The stock’s recent price action and fundamental indicators suggest ongoing challenges, with the share price now firmly at its lowest point in the past year.

While the company has demonstrated some sales growth and profit improvement, these factors have not been sufficient to offset the broader concerns related to profitability, debt servicing, and valuation risk. The stock’s performance remains significantly below market benchmarks, underscoring the difficulties faced by the company in regaining investor confidence.

Market and Sector Comparison

In comparison to the broader specialty chemicals sector, Daikaffil Chemicals India Ltd has underperformed markedly. The sector has benefited from more stable earnings and better market sentiment, whereas Daikaffil’s stock has been weighed down by its financial metrics and price declines.

The Sensex’s current position near its 52-week high, supported by mega-cap stocks, contrasts with Daikaffil’s downward trajectory, highlighting the divergence between large-cap market leaders and smaller, more challenged companies within the market.

Conclusion

Daikaffil Chemicals India Ltd’s fall to a 52-week low of Rs.46 reflects a combination of weak long-term fundamentals, financial stress, and underwhelming market performance. Despite some positive sales growth and profit increases, the stock remains under pressure, trading below all major moving averages and significantly lagging the broader market and sector indices.

Investors and market participants will continue to monitor the company’s financial metrics and market behaviour as it navigates these challenges within the specialty chemicals industry.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today