Dhanlaxmi Cotex Ltd Stock Hits 52-Week Low Amid Continued Downtrend

Stock Price Movement and Market Context

On the day the new low was recorded, Dhanlaxmi Cotex opened with a 5% gain, reaching an intraday high of Rs.76.86, but subsequently reversed course to close at Rs.70.2, down 4.10% on the day. This decline contributed to a four-day consecutive fall, during which the stock lost 17.71% in value. Notably, the stock did not trade on one of the last 20 trading days, indicating some irregularity in liquidity or trading activity.

The stock’s performance lagged its sector by 3.19% on the same day, while the broader Sensex index also declined by 0.86%, closing at 82,578.31 points. The Sensex remains 4.34% below its 52-week high of 86,159.02, and is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, signalling mixed market momentum.

Dhanlaxmi Cotex’s current price is substantially below its 52-week high of Rs.413.25, reflecting a steep decline of approximately 83% from that peak. Over the past year, the stock has delivered a negative return of 64.73%, in stark contrast to the Sensex’s positive 10.91% gain over the same period.

Technical Indicators and Trading Patterns

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish trend. This technical positioning suggests that the stock has struggled to gain upward momentum in the short, medium, and long term.

Erratic trading behaviour has also been observed, with the stock missing trading on one day in the last 20 sessions. Such irregularities can contribute to increased volatility and uncertainty among market participants.

Financial Performance and Fundamental Assessment

Dhanlaxmi Cotex’s financial results have reflected subdued growth and profitability pressures. For the nine months ended December 2025, net sales stood at Rs.10.76 crores, representing a decline of 21.80% compared to the previous period. Profit after tax (PAT) for the same period was Rs.0.22 crores, also down by 21.80%, signalling limited earnings growth.

The company has reported operating losses, which have contributed to a weak long-term fundamental strength assessment. Operating profit has contracted at an annualised rate of -189.05%, underscoring the challenges faced in generating sustainable earnings from core operations.

Moreover, the stock’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) have been negative, adding to concerns about the company’s ability to maintain profitability. Over the past year, profits have fallen by 124.5%, further emphasising the financial strain.

Valuation and Risk Profile

The stock is considered risky relative to its historical valuation averages. Its current Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating on 16 Oct 2025. The Market Cap Grade is rated 4, indicating a relatively small market capitalisation within its sector.

Performance comparisons reveal that Dhanlaxmi Cotex has underperformed the BSE500 index over the last three years, one year, and three months, reflecting below-par returns relative to a broad market benchmark.

Promoters remain the majority shareholders, maintaining control over the company’s strategic direction.

Summary of Key Metrics

To summarise, Dhanlaxmi Cotex Ltd’s stock has reached a new 52-week low of Rs.70.2, reflecting a significant decline from its previous highs. The stock’s recent four-day losing streak and underperformance relative to its sector and the Sensex highlight ongoing challenges. Financially, the company has experienced declining sales and profits, with operating losses and negative EBITDA contributing to a cautious outlook on its fundamentals.

Technical indicators remain bearish, with the stock trading below all major moving averages and exhibiting erratic trading patterns. The Mojo Grade of Strong Sell and a low Mojo Score further underline the stock’s current risk profile.

While the broader market has shown some weakness, Dhanlaxmi Cotex’s performance has been notably weaker, emphasising the specific pressures faced by the company within the Trading & Distributors sector.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today