Recent Price Movement and Market Context
On 21 Nov 2025, Daikaffil Chemicals India’s share price touched an intraday low of Rs.78.05, representing a drop of 4.88% from the previous close. The stock opened with a gap down of 4.88% and has traded within a narrow intraday range of just Rs.0.05, indicating limited volatility despite the downward pressure. Over the last two trading sessions, the stock has recorded a cumulative decline of 6.97%, signalling sustained selling interest.
In comparison, the Specialty Chemicals sector has outperformed Daikaffil Chemicals India by 4.11% on the same day, highlighting the stock’s relative weakness within its industry group. The broader market, represented by the Sensex, opened lower at 85,347.40 points, down 285.28 points or 0.33%, but has since recovered slightly to trade at 85,512.03 points, a marginal decline of 0.14%. Notably, the Sensex remains close to its 52-week high of 85,801.70 points, trading above its 50-day and 200-day moving averages, which contrasts with the stock’s bearish technical positioning.
Technical Indicators and Moving Averages
Daikaffil Chemicals India is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical setup suggests a persistent downtrend and a lack of short- to long-term price support. The stock’s 52-week high stands at Rs.281, underscoring the extent of the decline from its peak over the past year.
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Financial Performance and Profitability Trends
Daikaffil Chemicals India’s financial results have reflected pressures over recent periods. The company reported a net loss after tax (PAT) of Rs. -1.34 crore in the latest quarter, representing a decline of 131.0% compared to the previous corresponding period. Earnings before interest, taxes, depreciation and amortisation (PBDIT) also registered a negative figure 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.
Over the past five years, the company’s operating profit has shown a negative compound annual growth rate of approximately -190.59%, indicating a prolonged period of contraction in core profitability. This trend has contributed to a weak long-term fundamental position for the company within the Specialty Chemicals sector.
Debt Servicing and Financial Stability
Daikaffil Chemicals India’s ability to service its debt obligations has been under strain, as reflected by an average EBIT to interest coverage ratio of -2.52. This negative ratio points to challenges in generating sufficient earnings to cover interest expenses, which may impact the company’s financial flexibility and credit profile.
Stock Performance Relative to Market Benchmarks
In the last 12 months, Daikaffil Chemicals India’s stock has recorded a return of -64.81%, significantly underperforming the Sensex, which has delivered a positive return of 10.80% over the same period. Similarly, the BSE500 index has generated returns of 9.10%, further emphasising the stock’s relative weakness. Despite the negative price movement, the company’s profits have shown a rise of 22.8% over the past year, indicating some divergence between earnings and market valuation.
Shareholding and Market Capitalisation
The majority shareholding in Daikaffil Chemicals India remains with the promoters, maintaining a controlling interest in the company. The stock’s market capitalisation is graded at a moderate level, reflecting its position as a smaller player within the Specialty Chemicals sector.
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Summary of Key Concerns
The stock’s fall to Rs.78.05 marks a critical technical low point, reflecting ongoing challenges in both market sentiment and company fundamentals. The persistent negative returns over the past year, combined with losses at the operating level and weak debt coverage, contribute to a cautious outlook on the stock’s near-term performance. Trading below all major moving averages further underscores the subdued momentum.
While the broader market and sector indices have maintained relative strength, Daikaffil Chemicals India’s share price trajectory highlights the divergence between the company’s financial health and investor valuation. The narrow intraday trading range on the latest session suggests limited buying interest at current levels, reinforcing the subdued market environment for the stock.
Conclusion
Daikaffil Chemicals India’s stock reaching a 52-week low of Rs.78.05 is a significant development within the Specialty Chemicals sector. The combination of negative quarterly earnings, weak long-term profitability trends, and technical indicators below key moving averages paints a picture of ongoing challenges. The stock’s underperformance relative to the Sensex and sector peers further highlights the difficulties faced by the company in regaining investor confidence amid current market conditions.
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