Recent Price Movement and Market Context
Dhatre Udyog’s stock price has been on a downward trajectory, with the latest session recording a fall of 0.83%, underperforming its sector by 0.95%. Over the past two trading days, the stock has recorded a cumulative return of -0.99%, continuing a streak of declines. The current price of Rs.5.84 represents both a new 52-week and all-time low for the company, a notable development given the stock’s 52-week high of Rs.13.09.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This contrasts with the broader market, where the Sensex opened higher at 85,008.93 points, gaining 108.22 points (0.13%) before trading slightly lower at 84,954.80 points (0.06%). The Sensex remains close to its own 52-week high of 85,801.70 points and is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. Mid-cap stocks are leading the market rally, with the BSE Mid Cap index gaining 0.13% on the day.
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Long-Term Performance and Financial Indicators
Over the past year, Dhatre Udyog’s stock has recorded a return of approximately -50.66%, a stark contrast to the Sensex’s 6.03% gain over the same period. This divergence highlights the stock’s relative underperformance within the broader market context. The company’s 3-year and 3-month returns have also lagged behind the BSE500 index, underscoring a prolonged period of subdued market performance.
Financially, the company has exhibited signs of strain. Net sales have declined at an annual rate of -17.35% over the last five years, reflecting challenges in sustaining revenue growth. The average debt-to-equity ratio stands at a notably high 55.92 times, indicating a significant leverage position. Profitability metrics reveal an average return on equity of 5.12%, suggesting limited profitability relative to shareholders’ funds.
Recent Quarterly Results and Cost Pressures
The company’s June 2025 results showed a sharp increase in raw material costs, which grew by 127.12% year-on-year. This surge in input costs has contributed to negative earnings before interest, taxes, depreciation and amortisation (EBITDA), further pressuring the company’s financial health. Over the past year, profits have declined by 109.4%, reflecting the impact of these cost escalations and other operational factors.
Stock Valuation and Risk Considerations
Dhatre Udyog’s stock is currently trading at valuations considered risky relative to its historical averages. The combination of negative EBITDA, high leverage, and declining sales growth has contributed to a cautious market assessment. The stock’s recent price action, including the new 52-week low, reflects these underlying financial challenges and market sentiment.
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Shareholding and Sectoral Context
The majority shareholding in Dhatre Udyog is held by promoters, indicating concentrated ownership. The company operates within the Iron & Steel Products industry, a sector that has experienced varied performance amid fluctuating raw material prices and demand cycles. While the broader market indices, including the Sensex and mid-cap segments, have shown resilience and gains, Dhatre Udyog’s stock has not mirrored this trend.
Summary of Key Metrics
To summarise, Dhatre Udyog’s stock has reached Rs.5.84, its lowest level in the past 52 weeks and all time. The stock’s performance over the last year shows a decline of over 50%, with profitability and sales growth metrics indicating ongoing challenges. The company’s elevated debt levels and rising raw material costs have contributed to a cautious market stance. Meanwhile, the broader market environment remains relatively positive, with key indices near their highs and mid-cap stocks leading gains.
Investors and market participants will continue to monitor the stock’s price movements and financial disclosures as the company navigates this period of subdued performance.
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