Stock Price Movement and Market Context
On 26 Feb 2026, Dhanalaxmi Roto Spinners Ltd recorded an intraday high of Rs.83, representing a 3.07% gain for the day, and has been on a two-day consecutive gain streak with a cumulative return of 3.08%. However, this short-term uptick follows a sustained downward trend that culminated in the stock hitting Rs.79, its lowest level in the past year. The current price stands at approximately 48% below its 52-week high of Rs.152.40.
In comparison, the Sensex opened 142.71 points higher and traded at 82,421.86, up 0.18%, maintaining a position just 4.53% below its own 52-week high of 86,159.02. While the Sensex is trading below its 50-day moving average, the 50DMA remains above the 200DMA, signalling a cautiously positive medium-term trend. Mega-cap stocks are leading the market gains today, contrasting with the performance of Dhanalaxmi Roto Spinners Ltd.
The stock’s moving averages reveal a mixed technical picture: it is trading above its 5-day moving average but remains below the 20-day, 50-day, 100-day, and 200-day moving averages. This suggests some short-term momentum but persistent pressure in the medium to long term.
Financial Performance and Profitability Trends
Dhanalaxmi Roto Spinners Ltd’s recent quarterly results reflect subdued growth and profitability pressures. The Profit Before Tax excluding other income (PBT LESS OI) for the quarter stood at Rs.0.62 crore, marking a sharp decline of 49.9% compared to the average of the previous four quarters. Net sales for the quarter were Rs.55.28 crore, down 14.2% relative to the preceding four-quarter average, indicating a contraction in revenue generation.
Non-operating income accounted for a substantial 67.88% of the company’s Profit Before Tax, highlighting a reliance on income sources outside core operations. This factor may contribute to volatility in earnings quality and investor sentiment.
Over the last five years, the company has achieved a compound annual growth rate (CAGR) of 16.70% in operating profits, which is modest but indicates some underlying growth capability. However, this has not translated into consistent stock price appreciation, as the company’s one-year stock performance shows a decline of 12.17%, significantly underperforming the Sensex’s 10.42% gain and the BSE500’s 14.50% return over the same period.
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Valuation and Shareholder Composition
Despite the recent price weakness, Dhanalaxmi Roto Spinners Ltd maintains a very attractive valuation profile. The company’s return on equity (ROE) stands at 16.2%, which is a positive indicator of profitability relative to shareholder equity. The stock trades at a price-to-book value of 1, suggesting it is valued fairly in relation to its net asset base.
The company’s price-to-earnings-to-growth (PEG) ratio is 0.3, reflecting a low valuation relative to its earnings growth rate of 18.4% over the past year. This metric indicates that the market may be discounting the stock more heavily than warranted by its profit growth, possibly due to other concerns.
Majority shareholding is held by non-institutional investors, which may influence liquidity and trading dynamics. The market capitalisation grade is rated 4, indicating a mid-tier market cap status within its sector.
Sector and Industry Positioning
Dhanalaxmi Roto Spinners Ltd operates within the Garments & Apparels industry, a sector that has experienced mixed performance amid evolving consumer demand and supply chain pressures. The company’s Mojo Score currently stands at 26.0, with a Mojo Grade of Strong Sell, downgraded from Sell on 8 Sep 2025. This reflects a cautious stance based on fundamental and technical factors.
While the stock outperformed its sector by 3.04% today, the broader sector and market indices have shown more resilience over the past year. The company’s underperformance relative to the BSE500 and Sensex highlights challenges in maintaining competitive momentum.
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Summary of Key Metrics
The stock’s recent performance and valuation metrics present a complex picture. While the share price has declined to Rs.79, the company’s fundamentals show moderate profit growth and a reasonable valuation. The decline in quarterly sales and profit before tax excluding other income, alongside a high proportion of non-operating income, contribute to the cautious market sentiment.
Compared to the broader market, Dhanalaxmi Roto Spinners Ltd has underperformed significantly over the past year, with a negative return of 12.17% against the Sensex’s positive 10.42%. The downgrade to a Strong Sell grade reflects these factors and the company’s relative position within the Garments & Apparels sector.
Investors and analysts will continue to monitor the stock’s price action relative to its moving averages and sector performance as it navigates this low price territory.
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