Intraday and Recent Price Movements
On the day, Dollar Industries touched an intraday low of Rs 310.5, representing a 3.29% drop from the previous close. The stock underperformed its sector by 1.21%, closing with a day change of -2.51%. Notably, the share price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
Market Context and Broader Indices
The broader market environment also reflected pressure, with the Nifty index closing at 25,048.65, down 241.25 points or 0.95%. Among sectoral indices, Nifty Realty hit a new 52-week low on the same day. While the Nifty trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed technical signals. Large-cap segments dragged the market lower, with the Nifty Next 50 index declining by 1.97%.
Long-Term Performance and Benchmark Comparison
Over the past year, Dollar Industries has delivered a total return of -26.34%, significantly underperforming the Sensex, which gained 6.56% during the same period. The stock’s 52-week high was Rs 445, highlighting the extent of the recent decline. This persistent underperformance extends over multiple years, with the company lagging behind the BSE500 index in each of the last three annual periods.
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Financial Growth and Valuation Metrics
Dollar Industries’ long-term growth rates have been modest, with net sales increasing at an annualised rate of 14.64% and operating profit growing at 9.26% over the last five years. Despite the company’s size, domestic mutual funds hold no stake in the stock, which may reflect limited institutional conviction at current price levels.
Debt Servicing and Profitability Indicators
The company maintains a strong ability to service its debt, evidenced by an average EBIT to interest ratio of 11.17. Recent half-year results showed a return on capital employed (ROCE) of 13.75%, the highest recorded in recent periods. Quarterly operating profit to interest ratio also peaked at 9.89 times, with PBDIT reaching Rs 60.31 crore, signalling operational efficiency in managing financial obligations.
Valuation and Market Perception
With a ROCE of 13.1 and an enterprise value to capital employed ratio of 1.7, Dollar Industries is valued attractively relative to its peers’ historical averages. The stock trades at a discount compared to sector valuations, despite generating a 14.2% increase in profits over the past year. The company’s PEG ratio stands at 1.2, indicating a valuation that is not excessively stretched relative to earnings growth.
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Mojo Score and Rating Update
MarketsMOJO assigns Dollar Industries a Mojo Score of 46.0, categorising it with a Sell grade as of 5 Jan 2026, a downgrade from its previous Hold rating. The company’s market capitalisation grade is 3, reflecting its mid-tier size within the Garments & Apparels sector. This rating change underscores the stock’s recent performance trends and valuation concerns.
Summary of Key Concerns
The stock’s decline to a 52-week low is underpinned by consistent underperformance relative to benchmarks, modest growth rates, and limited institutional participation. While the company demonstrates sound debt servicing capacity and operational profitability, these factors have not translated into sustained share price appreciation. The stock’s trading below all major moving averages further highlights the prevailing bearish sentiment.
Sector and Peer Comparison
Within the Garments & Apparels sector, Dollar Industries’ valuation discount contrasts with peers who have maintained stronger price momentum. The sector itself has faced headwinds, as reflected in the broader market’s mixed technical signals and sectoral index lows. Dollar Industries’ 1-year return of -26.34% stands in stark contrast to the Sensex’s positive 6.56% gain, emphasising the stock’s relative weakness.
Conclusion
Dollar Industries Ltd’s fall to a 52-week low at Rs 304.15 marks a significant point in its recent market journey. Despite solid financial metrics in certain areas, the stock’s overall performance and valuation have been challenged by subdued growth and limited institutional interest. The current price levels reflect these dynamics, with the stock trading near its lowest point in the past year amid a broader market environment that has also experienced pressure.
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