Diamines & Chemicals Ltd Falls to 52-Week Low of Rs.230 Amid Continued Downtrend

Recent Price Movement and Market Context

On the trading day, Diamines & Chemicals Ltd’s stock touched an intraday low of Rs.230, representing a 4.17% decline from the previous close. The stock closed with a day change of -2.27%, underperforming the Specialty Chemicals sector by 0.53%. This marks the fifth consecutive day of losses, during which the stock has fallen by 10.15% cumulatively. The current price is substantially below the stock’s 52-week high of Rs.491.20, reflecting a near 53% drop over the past year.

The broader market environment has also been challenging. The Sensex opened 385.82 points lower and was trading at 81,637.41 by mid-session, down 0.66%. The index has been on a three-week losing streak, shedding 4.81% in that period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating some underlying market support despite recent weakness.

Technical Indicators and Moving Averages

Diamines & Chemicals Ltd is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning signals sustained bearish momentum and a lack of short-term recovery signals. The stock’s relative weakness compared to its sector and benchmark indices further emphasises the downward pressure.

Financial Performance and Profitability Trends

Diamines & Chemicals Ltd’s financial results have reflected a challenging environment over recent years. The company’s net sales have declined at an annualised rate of -0.33% over the last five years, while operating profit has deteriorated sharply by -185.79% in the same period. The latest quarterly results, declared in September 2025, showed a steep 51.54% drop in net sales to Rs.9.30 crores. The net profit after tax (PAT) for the quarter was a loss of Rs.4.15 crores, a decline of 268.7% compared to the corresponding period last year.

This marks the ninth consecutive quarter of negative results, underscoring the company’s ongoing difficulties in reversing its financial fortunes. The return on capital employed (ROCE) for the half-year period was recorded at -1.60%, the lowest level in recent history, indicating limited capital efficiency and profitability.

Valuation and Risk Assessment

The stock’s valuation metrics have also reflected elevated risk. The company’s EBITDA has been negative, contributing to a riskier profile relative to its historical averages. Over the past year, the stock has generated a total return of -50.76%, significantly underperforming the Sensex, which posted a positive return of 7.65% over the same period. Furthermore, Diamines & Chemicals Ltd has consistently underperformed the BSE500 index in each of the last three annual periods, highlighting persistent relative weakness.

Despite these challenges, the company maintains a low average debt-to-equity ratio of zero, indicating minimal leverage on its balance sheet. The majority shareholding remains with promoters, which may provide some stability in ownership structure.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Diamines & Chemicals Ltd a Mojo Score of 15.0, categorising it with a Strong Sell grade as of 5 June 2025. This represents a downgrade from the previous Sell rating, reflecting deteriorating fundamentals and market sentiment. The company’s market capitalisation grade stands at 4, indicating a micro-cap status with associated liquidity and volatility considerations.

The downgrade to Strong Sell aligns with the company’s financial trajectory, including declining sales, negative profitability, and consistent underperformance relative to sector peers and benchmark indices.

Summary of Key Metrics

To summarise, the key financial and market metrics for Diamines & Chemicals Ltd are as follows:

• 52-week low price: Rs.230 (21 Jan 2026)


• 52-week high price: Rs.491.20


• One-year stock return: -50.76%


• Sensex one-year return: +7.65%


• Net sales decline (latest quarter): -51.54% to Rs.9.30 crores


• PAT decline (latest quarter): -268.7% to Rs.-4.15 crores


• ROCE (half-year): -1.60%


• Debt-to-equity ratio: 0 (average)


• Mojo Score: 15.0 (Strong Sell)

The stock’s ongoing decline to new lows reflects the cumulative impact of subdued sales, negative earnings, and technical weakness. While the company’s low leverage and promoter backing provide some structural stability, the financial performance and market valuation remain under pressure.

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