Recent Price Movement and Market Context
On 12 Jan 2026, Dhatre Udyog Ltd’s share price touched Rs.5.25, the lowest level recorded in the past year and also an all-time low. This decline comes after three consecutive days of losses, during which the stock has fallen by 6.19%. The day’s performance saw a drop of 3.64%, underperforming the Iron & Steel Products sector by 4.28%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the broader market has shown resilience. The Sensex, after an initial negative opening down by 140.93 points, recovered to close marginally higher by 0.04% at 83,611.42 points. The index remains within 3.05% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. Despite this positive market backdrop, Dhatre Udyog Ltd’s stock has continued to lag significantly.
Long-Term Performance and Financial Health
Over the last year, Dhatre Udyog Ltd’s stock has delivered a negative return of 51.91%, starkly contrasting with the Sensex’s positive 8.10% gain over the same period. The company’s 52-week high was Rs.11.50, indicating a near 54% decline from that peak. This underperformance extends beyond the short term, with the stock also lagging the BSE500 index over the past three years, one year, and three months.
Financially, the company’s fundamentals have been under pressure. Net sales have contracted at an annualised rate of 17.35% over the past five years, reflecting subdued growth prospects. The company’s average return on equity stands at a modest 5.12%, indicating limited profitability relative to shareholders’ funds. Additionally, Dhatre Udyog Ltd carries a high debt burden, with an average debt-to-equity ratio of 55.92 times, underscoring significant leverage concerns.
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Profitability and Cost Pressures
The company reported negative EBITDA figures, reflecting ongoing challenges in generating operating profits. In the quarter ending June 2025, raw material costs surged by 127.12% year-on-year, exerting significant pressure on margins. This sharp increase in input costs has contributed to the company’s operating losses and constrained profitability.
Moreover, the stock’s valuation appears risky relative to its historical averages, with profits declining by 109.4% over the past year. This deterioration in earnings performance has compounded the stock’s downward trajectory and weighed on investor sentiment.
Shareholding and Market Perception
The majority shareholding remains with the company’s promoters, indicating concentrated ownership. Despite this, the stock’s Mojo Score stands at 3.0, with a Mojo Grade of Strong Sell as of 16 Jul 2024, downgraded from Sell. The Market Cap Grade is rated 4, reflecting the company’s relatively modest market capitalisation within its sector.
Comparative Sector and Market Position
Within the Iron & Steel Products sector, Dhatre Udyog Ltd’s performance contrasts with broader sector trends. While the sector has experienced fluctuations, the company’s stock has notably underperformed, both in absolute terms and relative to sector peers. The Sensex’s near 52-week high and positive momentum in mega-cap stocks further highlight the divergence in performance.
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Summary of Key Metrics
Dhatre Udyog Ltd’s current stock price of Rs.5.25 represents a significant decline from its 52-week high of Rs.11.50. The stock’s recent three-day losing streak and underperformance relative to sector and market indices underscore ongoing challenges. The company’s financial profile is characterised by weak long-term growth, high leverage, and low profitability, with raw material cost inflation further impacting results.
Despite the broader market’s modest gains and the Sensex’s proximity to its 52-week high, Dhatre Udyog Ltd remains under pressure, reflected in its Strong Sell Mojo Grade and deteriorated financial metrics. The concentrated promoter ownership has not translated into improved market performance, as the stock continues to trade below all major moving averages.
Market Outlook and Positioning
While the stock’s current valuation and financial indicators point to a challenging environment, it remains a notable case within the Iron & Steel Products sector for its pronounced underperformance. The company’s high debt levels and negative EBITDA highlight the financial constraints it faces, which have been reflected in the stock’s price action over the past year.
Investors and market participants will continue to monitor Dhatre Udyog Ltd’s performance against sector peers and broader market trends, particularly given the contrasting positive momentum in mega-cap stocks and the Sensex’s overall resilience.
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