Stock Price Movement and Market Context
On 3 February 2026, Deep Polymers Ltd recorded its lowest price in the past year at Rs.34.12, continuing a downward trajectory that has seen the stock lose 44.79% over the last 12 months. This contrasts sharply with the broader Sensex, which has gained 8.76% over the same period. The stock underperformed its sector as well, with the chemicals sector advancing by 3.49% today while Deep Polymers declined by 0.26%, underperforming the sector by 3.19%.
Despite a slight recovery after two consecutive days of decline, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. Meanwhile, the Sensex itself experienced volatility, opening with a gap up of 3,656.74 points but retreating by 1,396.04 points to trade at 83,927.16, just 2.66% shy of its 52-week high of 86,159.02.
Financial Performance and Fundamental Metrics
Deep Polymers Ltd’s financial indicators reflect challenges in growth and profitability. The company’s average Return on Capital Employed (ROCE) stands at 8.75%, a figure considered weak for long-term fundamental strength. The half-year ROCE dipped further to 7.70%, underscoring limited capital efficiency. Net sales have grown at a modest compound annual growth rate (CAGR) of 6.58% over the past five years, while operating profit has increased at a rate of 13.57% annually, both figures indicating subdued expansion.
Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 3.66 times, suggesting elevated leverage relative to earnings. The debtor turnover ratio for the half-year is also low at 3.57 times, pointing to slower collection cycles. These factors contribute to the company’s current Mojo Score of 26.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 17 November 2025, reflecting deteriorated sentiment based on fundamental and market data.
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Comparative Performance and Valuation
Over the past three years, Deep Polymers Ltd has consistently underperformed the BSE500 benchmark, with negative returns each year. The stock’s 52-week high was Rs.67.45, nearly double the current price, highlighting the extent of the decline. Profitability has also contracted, with profits falling by 32.4% over the last year.
Despite these challenges, the stock’s valuation metrics suggest a very attractive price point relative to capital employed. The company’s Enterprise Value to Capital Employed ratio stands at 0.9, indicating that the stock is trading at a discount compared to its peers’ historical averages. The ROCE of 5.3, while low, supports this valuation perspective.
Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction.
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Sector and Market Dynamics
The specialty chemicals sector, in which Deep Polymers operates, has shown resilience with a 3.49% gain today, contrasting with the stock’s decline. This divergence highlights company-specific factors influencing Deep Polymers’ performance rather than broader sector trends. The Sensex’s mixed session, with a strong opening followed by a pullback, reflects ongoing market volatility, yet mega-cap stocks continue to lead gains, underscoring the challenges faced by mid and small-cap stocks such as Deep Polymers.
Trading below all major moving averages further emphasises the stock’s current weak technical position, which has not yet shown signs of a sustained reversal despite a minor uptick after recent falls.
Summary of Key Metrics
To summarise, Deep Polymers Ltd’s key financial and market metrics as of early February 2026 are:
- 52-week low price: Rs.34.12
- 1-year stock return: -44.79%
- Sector performance today: +3.49%
- Debt to EBITDA ratio: 3.66 times
- Average ROCE (5 years): 8.75%
- Half-year ROCE: 7.70%
- Net sales CAGR (5 years): 6.58%
- Operating profit CAGR (5 years): 13.57%
- Mojo Score: 26.0 (Strong Sell)
- Market Cap Grade: 4
These figures collectively illustrate the pressures on Deep Polymers Ltd’s stock price and the challenges faced in maintaining growth and profitability in a competitive sector environment.
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