Dhunseri Tea & Industries Ltd. Stock Hits 52-Week Low at Rs.141

Stock Price Movement and Market Context

On 23 Jan 2026, Dhunseri Tea & Industries Ltd. opened sharply lower at Rs.141, representing a decline of 2.08% from the previous close. The stock traded at this level throughout the day, hitting an intraday low that also established the new 52-week bottom. This underperformance was more pronounced relative to the FMCG sector, where the stock lagged by 1.54% today.

The broader market environment was also subdued, with the Sensex falling by 797.99 points or 0.93% to close at 81,537.95 after a flat opening. Notably, the Sensex is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some mixed signals in market momentum.

Within the sector, Dhunseri Tea’s stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the prevailing downward trend. The stock’s 52-week high was Rs.256, highlighting the extent of the decline over the past year.

Financial Performance and Fundamental Weaknesses

Dhunseri Tea & Industries Ltd. has exhibited a challenging financial trajectory over recent years. The company’s operating profits have contracted at a compounded annual growth rate (CAGR) of -215.97% over the last five years, signalling significant erosion in core earnings capacity. This deterioration has contributed to the stock’s current valuation pressures and the downgrade in its Mojo Grade from Sell to Strong Sell as of 13 Feb 2025, with a current Mojo Score of 12.0.

The company’s ability to service its debt remains constrained, with an average EBIT to interest ratio of -2.67, indicating that earnings before interest and tax are insufficient to cover interest expenses. This weak coverage ratio raises concerns about financial stability and credit risk.

Profitability metrics also reflect subdued performance. The average return on equity (ROE) stands at a modest 1.19%, suggesting limited returns generated on shareholders’ funds. This low profitability per unit of equity further weighs on investor sentiment and valuation.

Quarterly Results and Profitability Trends

The company’s recent quarterly results for September 2025 further illustrate the pressures on earnings. Profit before tax excluding other income (PBT LESS OI) declined by 47.85% to Rs.18.56 crores, while profit after tax (PAT) fell by 26.5% to Rs.19.11 crores. Meanwhile, interest expenses increased by 34.72% to Rs.5.82 crores, exacerbating the strain on net profitability.

Despite the decline in stock price, the company’s profits have shown a rise of 66.9% over the past year, indicating some improvement in earnings. However, this has not translated into positive returns for shareholders, as the stock has delivered a negative return of -41.36% over the same period.

Relative Performance and Valuation Concerns

Dhunseri Tea & Industries Ltd. has consistently underperformed its benchmark indices. Over the last three annual periods, the stock has lagged behind the BSE500 index, reflecting persistent challenges in market valuation and investor confidence. The 1-year return of -41.36% starkly contrasts with the Sensex’s positive 6.60% gain, underscoring the stock’s relative weakness.

The stock’s valuation is considered risky compared to its historical averages, with negative EBITDA levels contributing to elevated uncertainty. This risk profile is reflected in the company’s Market Cap Grade of 4, indicating a smaller market capitalisation relative to peers.

Summary of Key Metrics

To summarise, Dhunseri Tea & Industries Ltd. currently exhibits the following key metrics:

• New 52-week low price: Rs.141
• Mojo Score: 12.0 with a Strong Sell grade (upgraded from Sell on 13 Feb 2025)
• Market Cap Grade: 4
• Operating profit CAGR (5 years): -215.97%
• EBIT to Interest ratio (average): -2.67
• Return on Equity (average): 1.19%
• Profit before tax (Q Sep 25): Rs.18.56 crores, down 47.85%
• Profit after tax (Q Sep 25): Rs.19.11 crores, down 26.5%
• Interest expense (Q Sep 25): Rs.5.82 crores, up 34.72%
• 1-year stock return: -41.36%
• Sensex 1-year return: +6.60%

Market and Sector Comparison

While the FMCG sector has generally maintained steady performance, Dhunseri Tea’s stock has not kept pace with sectoral gains. The stock’s underperformance relative to the Sensex and sector indices highlights the challenges faced by the company in maintaining competitive positioning and investor confidence.

The stock’s current trading below all major moving averages further emphasises the prevailing bearish trend, with no immediate signs of reversal based on technical indicators.

Conclusion

Dhunseri Tea & Industries Ltd.’s fall to a 52-week low of Rs.141 reflects a combination of weak financial fundamentals, subdued profitability, and relative underperformance against benchmarks. The company’s deteriorating operating profits, increased interest burden, and low return on equity contribute to the cautious market stance. The stock’s downgrade to a Strong Sell grade and its low Mojo Score further underline the challenges it faces in regaining investor confidence and market momentum.

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