Daikaffil Chemicals India Ltd Falls to 52-Week Low of Rs.48.65

Stock Price Movement and Market Context

On 30 Jan 2026, Daikaffil Chemicals India Ltd recorded its lowest price in the last 52 weeks at Rs.48.65. This new low comes after four consecutive days of declines, although the stock showed a modest gain today, outperforming its sector by 1.45%. Despite this slight uptick, the share price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

In comparison, the broader market has shown relative resilience. The Sensex opened lower at 81,947.31, down 619.06 points (-0.75%), and was trading at 82,197.93 (-0.45%) during the day. The index remains within 4.82% of its 52-week high of 86,159.02, with its 50-day moving average positioned above the 200-day moving average, indicating a generally positive medium-term trend for the market overall.

Financial Performance and Underlying Concerns

Daikaffil Chemicals’ financial metrics reveal significant stress. The company has reported operating losses, which have contributed to a weak long-term fundamental profile. Over the past five years, operating profit has declined at an annualised rate of -190.59%, underscoring persistent difficulties in generating sustainable earnings growth.

Quarterly results for September 2025 further illustrate the challenges. The company posted a net loss (PAT) of Rs. -1.34 crore, a steep fall of 131.0% compared to the previous period. Earnings before interest, depreciation, and taxes (PBDIT) also hit a low of Rs. -1.27 crore, while profit before tax excluding other income (PBT less OI) stood at Rs. -1.35 crore, marking the lowest levels recorded in recent quarters.

Valuation and Risk Profile

The stock’s valuation reflects its riskier profile relative to historical averages. Despite a 22.8% increase in profits over the past year, the share price has declined by 76.04%, significantly underperforming the Sensex, which has delivered a 7.06% return over the same period. This divergence highlights investor concerns about the company’s ability to translate earnings growth into shareholder value.

Further compounding the risk is the company’s weak debt servicing capacity. The average EBIT to interest ratio stands at -2.52, indicating that earnings before interest and taxes are insufficient to cover interest expenses. This metric points to financial strain and potential challenges in managing debt obligations effectively.

Sector and Shareholding Overview

Daikaffil Chemicals operates within the specialty chemicals industry, a sector that has experienced varied performance across its constituents. The company’s market capitalisation grade is rated 4, reflecting its micro-cap status and associated liquidity and scale considerations.

Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction. This concentrated ownership structure is typical in many specialty chemical firms but also places emphasis on promoter decisions amid the current financial environment.

Comparative Market Performance

Over the last year, Daikaffil Chemicals has underperformed not only the Sensex but also the broader BSE500 index, which has generated returns of 7.81%. The stock’s negative return of -76.04% contrasts sharply with these benchmarks, highlighting the extent of its relative weakness.

The 52-week high for the stock was Rs.226, illustrating the steep decline to the current low of Rs.48.65. This represents a drop of nearly 78.5% from the peak, underscoring the scale of the correction experienced by shareholders.

Mojo Score and Rating Update

MarketsMOJO assigns Daikaffil Chemicals a Mojo Score of 12.0, reflecting the company’s current financial and market standing. The Mojo Grade has recently been downgraded from Sell to Strong Sell as of 7 Apr 2025, signalling a deterioration in the company’s outlook based on the latest available data.

This downgrade aligns with the company’s ongoing challenges, including negative EBITDA and weak long-term growth prospects. The Strong Sell rating is indicative of the cautious stance adopted by the rating agency given the prevailing fundamentals.

Summary of Key Financial Indicators

To summarise, Daikaffil Chemicals India Ltd’s key financial indicators reveal:

• Operating profit decline at an annualised rate of -190.59% over five years
• Negative EBIT to interest coverage ratio averaging -2.52
• Quarterly PAT loss of Rs. -1.34 crore, down 131.0%
• Quarterly PBDIT and PBT less other income at record lows of Rs. -1.27 crore and Rs. -1.35 crore respectively
• Stock trading below all major moving averages
• Market capitalisation grade of 4, reflecting micro-cap status

These factors collectively contribute to the stock’s current valuation and price trajectory, culminating in the recent 52-week low.

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