Stock Performance and Market Context
On 23 Feb 2026, Desh Rakshak Aushdhalaya Ltd’s share price opened sharply lower, down 5.00% from the previous close, and remained at the day’s low of Rs. 25.65 throughout trading. The stock underperformed its sector by 5.45%, reflecting a challenging trading session. Notably, the stock has traded erratically in recent weeks, missing trading on three days out of the last twenty, which may have contributed to volatility and investor caution.
The current price is substantially below the stock’s 52-week high of Rs. 95.14, representing a decline of approximately 73%. This stark contrast highlights the downward pressure the stock has faced over the past year.
In comparison, the broader market has shown strength. The Sensex opened 92.12 points higher and climbed further by 248.94 points to close at 83,155.77, a 0.41% gain. The index remains just 3.61% shy of its own 52-week high of 86,159.02, supported by mega-cap stocks leading the rally. Despite this positive market backdrop, Desh Rakshak Aushdhalaya Ltd’s stock has not mirrored this trend.
Technical Indicators and Moving Averages
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests sustained downward momentum and a lack of short- to long-term price support. The absence of any upward price movement today, with the stock opening and trading flat at the low of Rs. 25.65, further emphasises the subdued market sentiment surrounding the stock.
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Financial Performance and Fundamental Metrics
Desh Rakshak Aushdhalaya Ltd’s financial fundamentals have been under pressure, contributing to the stock’s subdued performance. The company’s long-term Return on Capital Employed (ROCE) averages 6.89%, indicating modest efficiency in generating returns from its capital base. Over the past five years, net sales have grown at an annualised rate of 7.89%, while operating profit has increased by 9.58%, reflecting slow but steady growth.
However, the company’s ability to service its debt remains a concern, with an average EBIT to interest coverage ratio of 0.92, signalling limited cushion to meet interest obligations. This weak coverage ratio may weigh on investor confidence and credit standing.
Recent quarterly results for December 2025 showed flat performance, with the PBDIT (Profit Before Depreciation, Interest and Taxes) at a low Rs. 0.25 crore. Additionally, the debtors turnover ratio for the half-year stood at a low 1.05 times, suggesting slower collection cycles and potential working capital inefficiencies.
Relative Performance and Valuation
Over the last year, Desh Rakshak Aushdhalaya Ltd’s stock has declined by 23.77%, significantly underperforming the Sensex, which gained 10.42% during the same period. The broader BSE500 index generated returns of 12.91%, further highlighting the stock’s relative weakness.
Despite the price decline, the company’s profits have risen by 11% over the past year, indicating some operational resilience. The stock’s valuation metrics reflect this mixed picture. With a ROCE of 7.8 and an enterprise value to capital employed ratio of 1.2, the stock is trading at a discount relative to its peers’ historical valuations. This valuation gap may be indicative of market concerns about the company’s growth prospects and financial health.
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Shareholding and Market Capitalisation
The majority shareholding in Desh Rakshak Aushdhalaya Ltd remains with the promoters, maintaining a stable ownership structure. The company holds a Market Cap Grade of 4, reflecting its micro-cap status within the Pharmaceuticals & Biotechnology sector. The Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, an upgrade from a previous Strong Sell rating as of 16 Feb 2026. This adjustment indicates a slight improvement in the company’s outlook, though the overall sentiment remains cautious.
Summary of Key Metrics
To summarise, the stock’s key performance indicators as of 23 Feb 2026 are:
- New 52-week low price: Rs. 25.65
- Day’s low and opening price: Rs. 25.65 (no intraday range)
- Day change: -5.00%
- Underperformance versus sector: -5.45%
- 1-year stock return: -23.77%
- Sensex 1-year return: +10.42%
- ROCE (long term average): 6.89%
- Net sales growth (5 years CAGR): 7.89%
- Operating profit growth (5 years CAGR): 9.58%
- EBIT to interest coverage ratio (average): 0.92
- Debtors turnover ratio (HY): 1.05 times
- PBDIT (quarterly): Rs. 0.25 crore
These figures collectively illustrate the challenges faced by Desh Rakshak Aushdhalaya Ltd in maintaining price momentum and financial robustness amid a competitive and evolving pharmaceutical landscape.
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