Stock Performance and Market Context
Dhatre Udyog’s stock price has fallen sharply, down nearly 49.46% over the last 12 months, contrasting with the Sensex’s positive return of 8.10% during the same period. The stock’s 52-week high was Rs.12.14, highlighting the extent of the decline. On the day it hit the new low, the stock outperformed its sector by 2.59%, despite the Steel/Sponge Iron/Pig Iron sector falling by 2.75% overall.
The broader market environment has been challenging, with the Sensex opening 183.12 points lower and closing down 295.23 points at 84,482.79, a 0.56% decline. The Sensex remains 1.98% below its 52-week high of 86,159.02. Notably, the Sensex is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some underlying market resilience.
Dhatre Udyog’s share price is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum.
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Financial and Operational Metrics
Dhatre Udyog’s financial profile reveals several areas of concern. The company has reported operating losses, contributing to a weak long-term fundamental strength assessment. Over the past five years, net sales have declined at an annualised rate of 17.35%, indicating contraction rather than growth in core business activities.
The company carries a notably high debt burden, with an average debt-to-equity ratio of 55.92 times, reflecting significant leverage. This level of indebtedness increases financial risk and limits flexibility in capital management.
Profitability metrics also remain subdued. The average return on equity (ROE) stands at 5.12%, signalling low profitability relative to shareholders’ funds. Furthermore, the company’s profits have deteriorated sharply, with a 109.4% decline over the past year, underscoring the challenges in generating positive earnings.
Recent Quarterly Results and Cost Pressures
The June 2025 quarter results highlighted a substantial increase in raw material costs, which grew by 127.12% year-on-year. This surge in input expenses has exerted additional pressure on margins and overall financial performance.
Negative EBITDA figures further compound the risk profile of the stock, as the company struggles to generate earnings before interest, taxes, depreciation, and amortisation. This metric is a key indicator of operational cash flow health, and its negative status points to ongoing financial strain.
Comparative Performance and Sectoral Trends
Over the last three years, Dhatre Udyog has underperformed the BSE500 index across multiple time frames — three years, one year, and three months — reflecting persistent challenges in maintaining competitive performance. The stock’s current Mojo Score is 3.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 16 Jul 2024, indicating a deteriorated outlook from a market analytics perspective.
The company’s market capitalisation grade is 4, suggesting a relatively small market cap within its sector. Promoters remain the majority shareholders, maintaining control over corporate decisions.
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Sectoral and Market Dynamics
The Iron & Steel Products sector has experienced a downturn, with the Steel/Sponge Iron/Pig Iron segment declining by 2.75% recently. This sectoral weakness has coincided with Dhatre Udyog’s share price decline, reflecting broader market pressures on companies within this industry.
Despite the Sensex’s proximity to its 52-week high, Dhatre Udyog’s stock has not mirrored this positive trend, highlighting company-specific challenges that have weighed on investor sentiment and valuation.
Summary of Key Metrics
To summarise, Dhatre Udyog Ltd’s stock has reached a new 52-week low of Rs.5.5, down from a high of Rs.12.14 within the past year. The company’s financial indicators reveal declining sales, elevated debt levels, low profitability, and negative EBITDA. Raw material cost inflation and a challenging sector environment have further contributed to the stock’s underperformance.
While the broader market shows some resilience, Dhatre Udyog’s share price remains under pressure, trading below all major moving averages and carrying a Strong Sell Mojo Grade as of mid-2024.
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