Key Events This Week
16 Feb: New 52-week low at Rs.85.31 amid ongoing downtrend
17 Feb: Valuation metrics deteriorate, signalling heightened risk
19 Feb: Further 52-week low of Rs.81.10 as weakness continues
20 Feb: Week closes at fresh 52-week low of Rs.77.05
16 February 2026: Stock Hits New 52-Week Low at Rs.85.31
Dhanlaxmi Cotex Ltd’s share price opened the week with a sharp decline of 4.68%, closing at Rs.85.31, marking a fresh 52-week low. This drop was part of a three-day losing streak that cumulatively erased 13.84% of the stock’s value. The decline was notably sharper than the Sensex’s 0.70% gain on the same day, underscoring the stock’s relative weakness.
The stock’s fall to this level reflects ongoing concerns about its subdued financial performance, including a 21.80% year-on-year decline in net sales to Rs.10.76 crores and a similar drop in profit after tax to Rs.0.22 crores for the nine months ended December 2025. The share price trading below all key moving averages further emphasised the bearish momentum.
17 February 2026: Valuation Metrics Signal Elevated Risk
On 17 February, Dhanlaxmi Cotex’s valuation deteriorated further, with the price-to-earnings (P/E) ratio plunging to -22.22, reflecting negative earnings and loss-making status. The price-to-book value ratio stood at 0.52, indicating the stock was trading at roughly half its book value, a warning sign for investors given the company’s weak returns.
Enterprise value to EBITDA and EBIT ratios also turned negative, at -20.05 and -18.33 respectively, highlighting operational challenges. These metrics contrasted sharply with sector peers such as Satin Creditcare and SMC Global Securities, which maintained attractive valuations with positive earnings multiples.
The stock closed unchanged at Rs.85.31 but remained at its 52-week low, signalling persistent investor caution amid deteriorating fundamentals and a downgrade to a Strong Sell rating by MarketsMOJO.
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19 February 2026: Further Decline to Rs.81.10 Amid Continued Weakness
The downtrend intensified on 19 February as the stock fell 4.93% to a new 52-week low of Rs.81.10. This decline outpaced the sector’s underperformance of 4.64% and occurred despite a volatile market session where the Sensex fell 1.45%. The stock’s persistent trading below all major moving averages confirmed the sustained bearish trend.
Financially, the company’s operating profit showed a steep annualised decline of 189.05%, with negative EBITDA and deteriorating profitability metrics. The stock’s one-year return of -52.85% starkly contrasted with the Sensex’s 9.89% gain, highlighting the company’s ongoing struggles.
20 February 2026: Week Closes at Fresh 52-Week Low of Rs.77.05
On the final trading day of the week, Dhanlaxmi Cotex Ltd’s share price dropped another 4.99%, closing at Rs.77.05, marking the lowest level in 52 weeks. This decline occurred despite a broadly positive market environment where the Sensex rebounded by 0.41%. The stock underperformed its sector by 5.42%, extending its losing streak to two consecutive sessions with a cumulative loss of 9.68%.
The company’s financial results remain subdued, with net sales and profit after tax both down 21.80% year-on-year for the nine months ended December 2025. Operating losses and negative EBITDA continue to weigh on the stock’s valuation and investor sentiment. The Mojo Score of 12.0 and Strong Sell grade reflect the heightened risk and deteriorated fundamentals.
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Daily Price Performance Compared to Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.85.31 | -4.68% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.85.31 | +0.00% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.85.31 | +0.00% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.81.10 | -4.93% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.77.05 | -4.99% | 36,674.32 | +0.41% |
Key Takeaways
Persistent Downtrend: The stock consistently hit new 52-week lows throughout the week, closing at Rs.77.05 on 20 February, a 13.91% decline from the previous Friday’s close of Rs.89.50.
Valuation Concerns: Negative P/E ratio (-22.22) and negative EV/EBITDA ratios highlight the company’s loss-making status and operational challenges, contrasting with more favourably valued sector peers.
Financial Weakness: Declining net sales and profit after tax by 21.80% year-on-year, coupled with negative operating profit growth and EBITDA losses, underscore fundamental difficulties.
Market Underperformance: The stock’s sharp fall contrasts with the Sensex’s modest 0.39% gain over the week, indicating company-specific issues rather than broader market weakness.
Conclusion
Dhanlaxmi Cotex Ltd’s share price decline of 13.91% over the week ending 20 February 2026 reflects a continuation of its challenging financial and operational environment. The stock’s repeated new 52-week lows, deteriorating valuation metrics, and weak profitability have contributed to its underperformance relative to the broader market. Despite a stable Sensex, the company’s fundamentals remain under pressure, as evidenced by negative earnings multiples and declining sales. The Strong Sell rating and low Mojo Score further emphasise the elevated risk profile. Investors should remain cautious and monitor any forthcoming financial disclosures or strategic developments that might alter the company’s outlook.
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