Stock Price Movement and Market Context
On 12 Feb 2026, Daikaffil Chemicals India Ltd’s share price touched an intraday low of Rs 48.27, a level not seen in the past year. This represents a steep decline from its 52-week high of Rs 213.50, indicating a loss of approximately 77.4% from the peak. The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained downward momentum.
In contrast, the broader market has shown resilience. The Sensex, despite opening 265.21 points lower, closed down by 293.41 points at 83,675.02, a decline of 0.66%. Notably, the Sensex remains just 2.97% shy of its 52-week high of 86,159.02 and has recorded a 2.62% gain over the past three weeks. This divergence highlights the relative underperformance of Daikaffil Chemicals compared to the broader market.
Financial Performance and Fundamental Concerns
Daikaffil Chemicals India Ltd’s financial metrics reveal several areas of concern. The company has not declared financial results in the last six months, contributing to uncertainty around its current financial health. Over the past five years, the company’s operating profit has declined at an annualised rate of -194.16%, indicating significant erosion in profitability.
The company’s ability to service its debt is notably weak, with an average EBIT to interest ratio of -2.57. This negative ratio suggests that earnings before interest and tax are insufficient to cover interest expenses, raising questions about financial stability. Additionally, the company’s EBITDA remains negative, further underscoring the risk profile of the stock.
Performance Relative to Market Benchmarks
Over the last year, Daikaffil Chemicals has generated a return of -73.84%, a stark contrast to the Sensex’s positive return of 9.86% and the BSE500’s 12.54% gain. This substantial underperformance places the stock among the weaker performers in the specialty chemicals sector and the broader market.
Despite the negative stock price trajectory, the company reported a 26.5% increase in profits over the past year. However, this improvement has not translated into positive market sentiment or price appreciation, possibly due to other overriding concerns.
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Recent Sales Growth and Shareholding Structure
On a positive note, Daikaffil Chemicals reported net sales of Rs 7.51 crores in the latest six-month period, reflecting a robust growth rate of 114.57%. This surge in sales indicates some operational traction despite the broader financial and market challenges.
The company’s majority shareholding remains with promoters, which may influence strategic decisions and long-term direction. However, the current market valuation and performance suggest that investor confidence remains subdued.
Mojo Score and Market Ratings
Daikaffil Chemicals India Ltd holds a Mojo Score of 17.0, categorised as a Strong Sell. This rating was upgraded from Sell on 7 Apr 2025, reflecting a deterioration in the company’s overall quality and outlook. The market capitalisation grade stands at 4, indicating a micro-cap status with associated liquidity and volatility considerations.
The stock’s risk profile is elevated due to its negative EBITDA and weak debt servicing capacity, factors that contribute to its current valuation and market sentiment.
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Summary of Key Metrics
To summarise, Daikaffil Chemicals India Ltd’s stock has declined to Rs 48.27, its lowest level in 52 weeks, reflecting a year-to-date performance of -73.84%. The company’s financial indicators, including a negative EBIT to interest ratio and negative EBITDA, highlight ongoing financial stress. Despite a recent surge in net sales and a modest profit increase, the stock remains under pressure and continues to trade below all major moving averages.
The broader market environment shows relative strength, with the Sensex near its 52-week high and posting gains over recent weeks, underscoring the stock’s underperformance within its sector and the market at large.
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