Recent Price Movement and Market Context
The stock has been on a losing streak for the past three trading days, shedding approximately 7.61% during this period. On the day of the new low, it declined by 0.56%, moving in line with the broader sector's performance. Deepak Spinners is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.
In contrast, the Sensex opened lower by 158.87 points and was trading at 83,947.09, down 0.28%. Despite this, the benchmark index remains relatively close to its 52-week high of 86,159.02, just 2.63% away. The Sensex is positioned below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating a mixed technical backdrop for the broader market.
Long-Term Performance and Valuation Metrics
Over the last year, Deepak Spinners has underperformed significantly, delivering a negative return of 37.81%, while the Sensex posted a positive return of 8.13%. The stock’s 52-week high was Rs.194, highlighting the extent of the recent decline. This underperformance extends over a three-year horizon, with the company lagging behind the BSE500 index in each annual period.
Valuation-wise, the stock is considered risky relative to its historical averages. Despite a 78.1% increase in profits over the past year, the company’s operating profits have shown a negative compound annual growth rate (CAGR) of -199.04% over the last five years. This weak long-term fundamental strength has contributed to the stock’s current grading as a Strong Sell, upgraded from Sell on 6 Nov 2025, with a Mojo Score of 17.0 and a Market Cap Grade of 4.
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Financial Highlights and Profitability Trends
Despite the stock’s decline, Deepak Spinners reported positive quarterly results in September 2025. Net sales reached a quarterly high of Rs.139.47 crores, while PBDIT (Profit Before Depreciation, Interest and Taxes) also peaked at Rs.6.84 crores. The operating profit to net sales ratio for the quarter was the highest recorded at 4.90%, indicating some improvement in operational efficiency during that period.
However, the company’s overall operating profits remain negative, which continues to weigh on investor sentiment and valuation metrics. The majority of the company’s shares are held by non-institutional investors, which may influence trading dynamics and liquidity.
Technical and Sectoral Considerations
Trading below all major moving averages suggests that the stock is in a sustained downtrend, with limited short-term technical support. The Garments & Apparels sector, in which Deepak Spinners operates, has seen mixed performance, with the stock’s recent movement aligning with sector trends on the day of the new low.
The broader market’s relative strength compared to Deepak Spinners highlights the stock’s specific challenges rather than a sector-wide downturn. The Sensex’s proximity to its 52-week high contrasts with the stock’s 52-week low, underscoring the divergence in performance.
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Summary of Key Metrics
To summarise, Deepak Spinners Ltd. is currently trading at Rs.114.2, its lowest level in the past 52 weeks, reflecting a 37.81% decline over the last year. The stock’s Mojo Grade of Strong Sell and a low Mojo Score of 17.0 reflect concerns over its long-term profitability and valuation risks. Despite some quarterly sales and profit improvements, the company’s negative operating profit trend and consistent underperformance relative to benchmarks remain notable.
The stock’s technical indicators, including its position below all major moving averages, reinforce the current downtrend. Meanwhile, the broader market and sector indices have shown relative resilience, highlighting the stock-specific nature of Deepak Spinners’ recent price movements.
Shareholding Pattern
Non-institutional investors hold the majority of shares in Deepak Spinners Ltd., which may impact trading volumes and price volatility. This ownership structure can influence the stock’s market behaviour, especially during periods of price weakness.
Conclusion
Deepak Spinners Ltd.’s fall to a 52-week low at Rs.114.2 marks a significant milestone in its recent price trajectory. The combination of weak long-term fundamentals, negative operating profit trends, and technical weakness has contributed to this decline. While quarterly results showed some positive signs, the overall performance and valuation metrics continue to present challenges for the stock within the Garments & Apparels sector.
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