Dhanlaxmi Cotex Ltd Falls to 52-Week Low of Rs.113 Amidst Continued Downtrend

Recent Price Movement and Market Context

On 21 Jan 2026, Dhanlaxmi Cotex Ltd opened sharply lower, declining by 4.96% to Rs.113, which also represented the day’s intraday low. The stock traded at this level throughout the session, unable to recover ground. This performance notably underperformed its sector by 3.72% on the day. The decline extends a losing streak over the past three days, during which the stock has lost 13.08% cumulatively.

Technical indicators show the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This technical weakness coincides with broader market softness, as the Sensex opened 385.82 points lower and currently trades at 81,791.54, down 0.47%. The Sensex itself is on a three-week losing streak, down 4.63% over that period, and is trading below its 50-day moving average, although the 50DMA remains above the 200DMA.

Financial Performance and Valuation Concerns

Dhanlaxmi Cotex Ltd’s financial metrics reveal challenges that have contributed to the stock’s subdued performance. The company reported net sales of Rs.5.94 crores in the latest six-month period, reflecting a steep decline of 48.12% compared to prior periods. Correspondingly, the company posted a net loss (PAT) of Rs.0.48 crores, also down by 48.12%, indicating a contraction in profitability.

Over the past year, the stock has generated a negative return of 10.74%, significantly underperforming the Sensex, which gained 7.85% during the same timeframe. Profitability has deteriorated sharply, with profits falling by 84.3% year-on-year. The company’s net sales growth rate over the longer term remains modest at 7.82% annually, which has not been sufficient to offset recent declines.

Return on equity (ROE) stands at a low level of 1, while the stock’s price-to-book value ratio is 0.7, indicating a valuation that is relatively expensive compared to peers’ historical averages. This valuation premium, despite weak fundamentals, has been a factor in the stock’s recent correction.

Sector and Peer Comparison

Dhanlaxmi Cotex Ltd operates within the Trading & Distributors sector, which has seen mixed performance amid broader market volatility. The stock’s underperformance relative to the BSE500 index, which has delivered 6.18% returns over the past year, highlights its relative weakness. Additionally, the NIFTY MEDIA index also hit a 52-week low on the same day, indicating sectoral pressures in related segments.

The company’s market capitalisation grade is rated 4, reflecting a mid-tier market cap status, while its Mojo Score stands at 7.0 with a Mojo Grade of Strong Sell as of 16 Oct 2025, upgraded from a Sell rating. This grading reflects the company’s weak long-term fundamental strength and valuation concerns.

Shareholding and Structural Factors

The majority shareholding remains with promoters, which can influence strategic decisions and capital allocation. However, the current financial and market performance suggests that the company is facing headwinds that have yet to be fully addressed in the stock price.

Historical Price Range and Performance Trends

The stock’s 52-week high was Rs.413.25, indicating a substantial decline of over 72% from that peak to the current 52-week low of Rs.113. This wide price range underscores the volatility and challenges faced by the company over the past year. The sustained downward trend in price, combined with weak financial results, has contributed to the stock’s current valuation and market sentiment.

Despite the recent price weakness, the stock’s trading volumes and price action suggest that it remains under pressure, with no significant recovery attempts observed in recent sessions. The gap down opening and persistent trading at the low price point reflect cautious market behaviour.

Summary of Key Metrics

To summarise, Dhanlaxmi Cotex Ltd’s key metrics as of 21 Jan 2026 are:

• New 52-week low price: Rs.113


• Three-day cumulative decline: -13.08%


• Net sales (latest six months): Rs.5.94 crores, down 48.12%


• Profit after tax (latest six months): Rs.-0.48 crores, down 48.12%


• Return on equity: 1


• Price to book value: 0.7


• Mojo Score: 7.0 (Strong Sell)


• Market cap grade: 4


• One-year stock return: -10.74%


• One-year Sensex return: +7.85%

The stock’s performance and financial indicators highlight the challenges faced by Dhanlaxmi Cotex Ltd in maintaining growth and profitability amid a competitive and volatile market environment.

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