Dhanlaxmi Cotex Ltd Falls to 52-Week Low of Rs.73.2 Amid Continued Downtrend

Stock Price Movement and Trading Activity

On 23 Feb 2026, Dhanlaxmi Cotex Ltd’s stock opened sharply lower by 5%, settling at Rs.73.2, which also represented the day’s low. Notably, the stock traded at this level throughout the session without any significant price range, indicating a lack of upward momentum. This marks the third consecutive day of decline, during which the stock has lost approximately 14.2% of its value. The stock’s performance today lagged behind its sector by 5.62%, reflecting relative weakness within the Trading & Distributors sector.

Trading activity has been somewhat erratic in recent weeks, with the stock not trading on one of the last 20 trading days, adding to concerns about liquidity and investor engagement. Furthermore, Dhanlaxmi Cotex is currently trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — underscoring the prevailing downtrend in its price action.

Comparative Market Context

While Dhanlaxmi Cotex has been declining, the broader market has shown resilience. The Sensex opened 92.12 points higher and closed up by 442.41 points at 83,349.24, a gain of 0.65%. The index remains within 3.37% of its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. Despite the Sensex trading below its 50-day moving average, the 50DMA remains above the 200DMA, signalling a generally positive medium-term trend for the benchmark. This divergence highlights the underperformance of Dhanlaxmi Cotex relative to the broader market.

Financial Performance and Fundamental Assessment

Dhanlaxmi Cotex Ltd’s financial metrics have reflected a challenging environment. The company reported net sales of Rs.10.76 crores for the nine months ended December 2025, representing a decline of 21.8% compared to the previous period. Profit after tax (PAT) for the same period was Rs.0.22 crores, also down by 21.8%. These figures indicate a flat to negative growth trajectory in the near term.

Operating profit trends have been particularly concerning, with an annualised decline rate of 189.05%, signalling a contraction in core profitability. The company has recorded operating losses, which have contributed to a weak long-term fundamental strength assessment. Over the past year, profits have fallen by 124.5%, while the stock has generated a negative return of 61.39%, significantly underperforming the Sensex, which gained 10.71% over the same period.

Valuation and Risk Profile

The stock’s valuation metrics suggest elevated risk relative to its historical averages. Negative EBITDA levels and deteriorating profitability have led to a downgrade in the company’s Mojo Grade from Sell to Strong Sell as of 16 Oct 2025. The Mojo Score currently stands at 12.0, reflecting the heightened caution warranted by the company’s financial and market performance.

In addition to the financial challenges, the stock’s market capitalisation grade is rated at 4, indicating a micro-cap status with associated liquidity and volatility considerations. The majority shareholding remains with promoters, which may influence strategic decisions and capital allocation going forward.

Long-Term and Recent Performance Trends

Over the last three years, Dhanlaxmi Cotex has consistently underperformed the BSE500 index across multiple time frames, including the last three months, one year, and three years. The stock’s 52-week high was Rs.413.25, highlighting the extent of the decline to the current level of Rs.73.2. This represents a substantial erosion of market value and investor wealth over the period.

Summary of Key Metrics

The following encapsulates the critical data points for Dhanlaxmi Cotex Ltd as of 23 Feb 2026:

• New 52-week low price: Rs.73.2
• Day’s price change: -5.00%
• Consecutive three-day decline: -14.2% total return
• Net sales (9M Dec 2025): Rs.10.76 crores, down 21.8%
• PAT (9M Dec 2025): Rs.0.22 crores, down 21.8%
• Operating profit annual decline: -189.05%
• Profit fall over past year: -124.5%
• Mojo Score: 12.0 (Strong Sell), downgraded from Sell on 16 Oct 2025
• Market cap grade: 4 (micro-cap)
• 52-week high: Rs.413.25

Market Position and Shareholding

Dhanlaxmi Cotex operates within the Trading & Distributors sector, which has seen mixed performance in recent months. The company’s promoter group remains the majority shareholder, maintaining control over strategic direction. Despite the challenging financial backdrop, the company continues to be monitored closely for any shifts in operational or financial dynamics.

Conclusion

Dhanlaxmi Cotex Ltd’s stock reaching a 52-week low of Rs.73.2 reflects a period of sustained price weakness amid declining sales, profits, and operating performance. The stock’s underperformance relative to the Sensex and its sector, combined with a downgrade to a Strong Sell rating, highlights the challenges faced by the company. Trading below all major moving averages and exhibiting limited intraday price movement, the stock remains in a subdued phase within a broader market environment that is otherwise showing strength.

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