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

Stock Price Movement and Market Context

On 25 Feb 2026, Deep Polymers Ltd’s share price slipped to Rs.32.5, representing its lowest level in the past year. This decline occurred despite a broadly positive market environment, with the Sensex advancing 0.74% to close at 82,831.49 points. The benchmark index remains within 4.02% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. In contrast, Deep Polymers underperformed its sector by 0.88% on the day, continuing a trend of relative weakness.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This technical positioning reflects investor caution and a lack of short-term price support.

Financial Performance and Valuation Metrics

Deep Polymers’ financial metrics reveal several areas of concern. The company’s one-year total return stands at -35.46%, markedly underperforming the Sensex’s 11.05% gain over the same period. Its 52-week high was Rs.67.45, indicating a near 52% decline from that peak.

Return on Capital Employed (ROCE) remains subdued, averaging 8.75% over the long term, with the half-year figure dropping further to 7.70%. This level is considered weak within the specialty chemicals industry, where capital efficiency is a critical performance indicator. Additionally, the company’s Debt to EBITDA ratio is elevated at 3.66 times, highlighting a relatively high leverage position that may constrain financial flexibility.

Debtors turnover ratio for the half-year is also low at 3.57 times, suggesting slower collection cycles and potential working capital pressures. These factors collectively contribute to the cautious market sentiment surrounding the stock.

Comparative Performance and Market Position

Over the last three years, Deep Polymers has consistently underperformed the BSE500 index, failing to generate positive returns in any annual period. Its cumulative underperformance underscores challenges in maintaining competitive positioning within the specialty chemicals sector.

Despite these headwinds, the stock’s valuation metrics present a contrasting picture. With an Enterprise Value to Capital Employed ratio of 0.9 and a ROCE of 5.3 in recent assessments, the stock is trading at a discount relative to its peers’ historical averages. This valuation gap reflects market concerns but also indicates a degree of pricing adjustment already factored in by investors.

Profitability has also declined, with reported profits falling by 26.1% over the past year, further weighing on investor sentiment and contributing to the stock’s downward trajectory.

Credit Ratings and Market Sentiment

MarketsMOJO assigns Deep Polymers a Mojo Score of 26.0, categorising it as a Strong Sell. This rating was downgraded from Sell on 17 Nov 2025, reflecting deteriorating fundamentals and market outlook. The company’s Market Cap Grade is rated 4, indicating a relatively modest market capitalisation within its sector.

Promoters remain the majority shareholders, maintaining significant control over corporate governance and strategic direction. The stock’s day change today was a decline of 0.32%, consistent with its recent trend of subdued price action.

Sector and Broader Market Dynamics

Deep Polymers operates within the specialty chemicals industry, a sector that has experienced mixed performance amid fluctuating raw material costs and evolving demand patterns. While the broader Sensex has shown resilience, led by mega-cap stocks, smaller and mid-cap specialty chemical companies like Deep Polymers have faced headwinds due to competitive pressures and financial constraints.

The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, signalling a cautiously optimistic medium-term market trend. Against this backdrop, Deep Polymers’ relative weakness highlights company-specific factors influencing its share price.

Summary of Key Financial Indicators

To encapsulate, Deep Polymers Ltd’s key financial and market indicators as of 25 Feb 2026 are:

• 52-week low price: Rs.32.5
• 52-week high price: Rs.67.45
• One-year return: -35.46%
• ROCE (long term average): 8.75%
• ROCE (half-year): 7.70%
• Debt to EBITDA ratio: 3.66 times
• Debtors turnover ratio (half-year): 3.57 times
• Profit decline over past year: -26.1%
• Mojo Score: 26.0 (Strong Sell)
• Market Cap Grade: 4

These metrics collectively illustrate the challenges faced by Deep Polymers in maintaining growth and profitability, which have been reflected in its share price performance.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →