Stock Price Movement and Market Context
On 22 Jan 2026, Damodar Industries Ltd's share price hit Rs.25.3, the lowest level recorded in the past year, reflecting a continued downward trend. Despite this, the stock outperformed its sector by 4.29% during the day and opened with a gap up of 2.78%, indicating some intraday recovery attempts. The stock exhibited high volatility, with an intraday price range between Rs.25.3 and Rs.29.39, representing a 10.61% weighted average price volatility. Notably, the stock has gained after three consecutive days of decline, though it remains below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day marks.
In comparison, the broader market showed mixed signals. The Sensex opened higher at 82,459.66 points, gaining 550.03 points (0.67%), but was trading slightly lower at 82,160.31 points (0.31%) during the day. The Sensex remains 4.87% below its 52-week high of 86,159.02, and has experienced a 4.2% decline over the past three weeks. Mid-cap stocks led the market rally, with the BSE Mid Cap index gaining 0.9% today.
Financial Performance and Fundamental Metrics
Damodar Industries Ltd's financial indicators continue to reflect challenges. The company has recorded a negative compound annual growth rate (CAGR) of -6.04% in net sales over the last five years, signalling contraction in revenue streams. Profitability metrics remain subdued, with an average Return on Equity (ROE) of 7.22%, indicating limited returns generated on shareholders’ funds.
Debt servicing capacity is a concern, with a high Debt to EBITDA ratio of 6.54 times, suggesting elevated leverage relative to earnings before interest, taxes, depreciation, and amortisation. The debt-equity ratio at the half-year mark stands at a relatively moderate 1.22 times, the lowest in recent periods, but the overall debt burden remains significant.
Promoter shareholding dynamics add to the stock’s pressure. Approximately 30.19% of promoter shares are pledged, which can exert additional downward pressure on the stock price during market downturns or liquidity constraints.
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Historical Performance and Market Comparison
Over the past year, Damodar Industries Ltd has underperformed significantly, delivering a total return of -32.18%, in stark contrast to the Sensex’s positive return of 7.53% over the same period. The stock’s 52-week high was Rs.43.49, underscoring the steep decline to the current low of Rs.25.3. This underperformance extends over a longer horizon as well, with the stock consistently lagging behind the BSE500 benchmark in each of the last three annual periods.
Recent Quarterly and Nine-Month Results
Despite the stock’s price weakness, some financial metrics have shown improvement. The company reported its highest operating profit to interest coverage ratio in the recent quarter at 2.04 times, indicating better capacity to meet interest obligations from operating profits. The profit after tax (PAT) for the nine-month period rose to Rs.4.46 crores, reflecting a 97.2% increase in profits over the previous year.
Return on Capital Employed (ROCE) remains modest at 2.4%, but the valuation metrics suggest the stock is trading at a discount relative to its peers. The enterprise value to capital employed ratio stands at 0.7, which is considered very attractive from a valuation standpoint. The company’s PEG ratio is 0.1, indicating that the stock price is low relative to its earnings growth.
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Trading Patterns and Volatility
The stock’s trading activity has been erratic, with one day of non-trading in the last 20 days, reflecting intermittent liquidity or market interest. The high intraday volatility of 10.61% today is indicative of significant price swings, which may be influenced by broader market movements and company-specific factors.
Damodar Industries Ltd’s current Mojo Score stands at 32.0, with a Mojo Grade of Sell, upgraded from a previous Strong Sell rating on 12 Jan 2026. The market capitalisation grade is 4, reflecting its micro-cap status within the Garments & Apparels sector.
Sector and Market Environment
The Garments & Apparels sector continues to face headwinds amid fluctuating demand and competitive pressures. Damodar Industries Ltd’s performance contrasts with the broader mid-cap segment, which has shown resilience with gains of 0.9% today. The Sensex’s recent three-week decline of 4.2% adds to the cautious sentiment prevailing in the market.
Overall, Damodar Industries Ltd’s stock has experienced a notable decline to its 52-week low, driven by a combination of subdued financial growth, leverage concerns, and market volatility. While some financial ratios and profit metrics have improved, the stock remains below key technical levels and continues to face challenges relative to its sector and benchmark indices.
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