Deep Polymers Ltd Falls to 52-Week Low Amid Continued Underperformance

Stock Price Movement and Market Context

On 23 Feb 2026, Deep Polymers Ltd’s share price reached an intraday low of Rs.34.02, representing a 3.13% drop on the day and a 1.20% decline compared to the previous close. This marks the lowest price level for the stock in the past year, down sharply from its 52-week high of Rs.67.45. The stock has been on a downward trajectory for the last two consecutive sessions, losing approximately 6% in returns during this period.

In contrast, the broader market has shown resilience. The Sensex opened 92.12 points higher and climbed further by 245.35 points to close at 83,152.18, up 0.41%. The index remains just 3.62% shy of its 52-week high of 86,159.02. Mega-cap stocks have led the market rally, while Deep Polymers has underperformed its sector by 3.36% today.

Technically, Deep Polymers is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained weakness in price momentum.

Financial Performance and Fundamental Metrics

Deep Polymers Ltd’s financial health continues to reflect challenges. The company’s long-term fundamental strength is considered weak, with an average Return on Capital Employed (ROCE) of 8.75%. The half-year ROCE has deteriorated further to 7.70%, indicating subdued capital efficiency. Additionally, the company’s ability to service debt remains constrained, with a high Debt to EBITDA ratio of 3.66 times, signalling elevated leverage risk.

Receivables management also shows signs of strain, with the Debtors Turnover Ratio at a low 3.57 times for the half-year period, suggesting slower collection cycles. Profitability has declined notably, with profits falling by 26.1% over the past year.

Over the last 12 months, Deep Polymers has generated a negative return of 35.25%, significantly underperforming the Sensex, which posted a positive return of 10.41% over the same period. The stock has consistently lagged behind the BSE500 benchmark in each of the past three annual periods, underscoring persistent relative weakness.

Valuation and Market Perception

Despite the challenges, the stock’s valuation metrics indicate a very attractive entry point from a purely price perspective. The company’s ROCE stands at 5.3, and it trades at an Enterprise Value to Capital Employed ratio of 0.9, which is below the average historical valuations of its peers in the specialty chemicals sector. This discount reflects the market’s cautious stance given the company’s financial and operational profile.

Majority ownership remains with promoters, maintaining a stable shareholding structure.

Rating and Market Sentiment

MarketsMOJO assigns Deep Polymers Ltd a Mojo Score of 26.0, categorising it as a Strong Sell. This rating was upgraded from Sell to Strong Sell on 17 Nov 2025, reflecting a deterioration in the company’s overall quality and outlook. The Market Cap Grade stands at 4, indicating a relatively modest market capitalisation within its sector.

The stock’s recent performance and fundamental indicators have contributed to this cautious stance, with the rating signalling significant concerns over the company’s ability to generate sustainable returns and manage its financial obligations effectively.

Summary of Key Data Points

• New 52-week low: Rs.34.02 (intraday low on 23 Feb 2026)
• 52-week high: Rs.67.45
• One-year return: -35.25%
• Sensex one-year return: +10.41%
• Debt to EBITDA ratio: 3.66 times
• ROCE (average): 8.75%
• ROCE (half-year): 7.70%
• Debtors Turnover Ratio (half-year): 3.57 times
• Enterprise Value to Capital Employed: 0.9
• Mojo Score: 26.0 (Strong Sell)
• Market Cap Grade: 4

Market Environment

The broader market environment remains positive, with the Sensex advancing and mega-cap stocks leading gains. However, Deep Polymers Ltd’s share price movement diverges from this trend, reflecting company-specific factors rather than sector-wide influences. The specialty chemicals sector itself has seen mixed performance, with Deep Polymers positioned towards the lower end of the spectrum.

Conclusion

Deep Polymers Ltd’s fall to a 52-week low of Rs.34.02 highlights ongoing challenges in maintaining competitive performance within the specialty chemicals sector. The stock’s sustained underperformance relative to the Sensex and its sector peers, combined with subdued financial metrics and a cautious rating outlook, underscore the difficulties faced by the company in recent periods. While valuation metrics suggest the stock is trading at a discount, the fundamental indicators reflect a need for continued monitoring of the company’s financial health and market positioning.

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