Deep Polymers Ltd Falls to 52-Week Low of Rs.35 Amid Continued Downtrend

Stock Price Movement and Market Context

On 19 Jan 2026, Deep Polymers Ltd’s share price fell by 1.65% to hit Rs.35, its lowest level in the past year. This decline comes after two consecutive days of losses, during which the stock has dropped by 2.14%. The stock’s performance today notably lagged behind its Specialty Chemicals sector peers, underperforming by 1.58%. Furthermore, Deep Polymers is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.

The broader market environment has also been challenging. The Sensex opened flat but subsequently declined by 485.84 points, or 0.67%, closing at 83,008.65. Despite this, the Sensex remains within 3.8% of its 52-week high of 86,159.02. However, the index has experienced a three-week consecutive fall, losing 3.21% over this period. Notably, the Sensex is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating some underlying market resilience.

Financial Performance and Valuation Metrics

Deep Polymers Ltd’s financial indicators reveal several areas of concern. The company’s long-term fundamental strength is weak, with an average Return on Capital Employed (ROCE) of 8.75%, which is modest relative to industry standards. Over the past five years, the company’s net sales have grown at an annual rate of 6.58%, while operating profit has increased by 13.57% annually. These growth rates suggest moderate expansion but fall short of robust sector benchmarks.

Debt servicing capacity is another area of caution. The company’s Debt to EBITDA ratio stands at 3.66 times, indicating a relatively high leverage level that could constrain financial flexibility. Additionally, the half-yearly ROCE has declined to 7.70%, the lowest recorded in recent periods, while the Debtors Turnover Ratio has also dropped to 3.57 times, signalling potential inefficiencies in receivables management.

Comparative Performance and Market Position

Over the last year, Deep Polymers Ltd has delivered a total return of -45.65%, significantly underperforming the Sensex, which posted an 8.35% gain over the same period. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the past three annual periods. The stock’s 52-week high was Rs.70, indicating a near 50% decline from its peak.

Despite these challenges, the stock’s valuation metrics suggest a very attractive entry point from a price perspective. The company’s ROCE currently stands at 5.3, and it trades at an enterprise value to capital employed ratio of 1, which is lower than the average historical valuations of its peers. This discount reflects the market’s cautious stance on the company’s prospects amid its financial and operational profile.

Profitability has also been under pressure, with reported profits falling by 32.4% over the past year. The majority shareholding remains with promoters, maintaining a stable ownership structure.

Rating and Market Sentiment

Reflecting these financial and market dynamics, Deep Polymers Ltd currently holds a Mojo Score of 26.0, categorised as a Strong Sell. This rating was downgraded from Sell on 17 Nov 2025, indicating a deterioration in the company’s outlook. The Market Capitalisation Grade is 4, consistent with its micro-cap status within the Specialty Chemicals sector.

The stock’s recent price action and fundamental indicators underscore the challenges faced by Deep Polymers Ltd in maintaining growth and profitability in a competitive environment. The combination of subdued sales growth, declining profitability, and elevated leverage has contributed to the stock’s downward trajectory and its new 52-week low.

Summary of Key Metrics

• New 52-week low price: Rs.35

• 1-year stock return: -45.65%

• Sensex 1-year return: +8.35%

• Average ROCE (5 years): 8.75%

• Debt to EBITDA ratio: 3.66 times

• Profit decline over past year: -32.4%

• Mojo Score: 26.0 (Strong Sell)

• Market Cap Grade: 4

While the stock’s valuation appears attractive relative to peers, the prevailing financial indicators and market performance highlight the difficulties Deep Polymers Ltd is currently navigating within the Specialty Chemicals sector.

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