Dwarikesh Sugar Industries Ltd Declines 2.30% Amid Strong Sell Downgrade and Technical Headwinds

Monday, 2 February: Downgrade to Strong Sell Reflects Weak Financials and Bearish Technicals

On 2 February 2026, Dwarikesh Sugar Industries Ltd opened the week under pressure, closing at Rs.34.18, down 2.81% from the previous Friday’s close of Rs.35.17. This decline coincided with MarketsMOJO’s downgrade of the stock to a Strong Sell rating, driven by deteriorating financial performance and bearish technical indicators.

The company reported a net loss after tax of ₹32.62 crores in Q2 FY25-26, a dramatic 651.0% decline compared to the previous four-quarter average, signalling persistent operational challenges. Over the past five years, net sales contracted at an annualised rate of -2.79%, while operating profit declined sharply by -18.79% per annum. These negative trends weighed heavily on investor confidence.

Technically, the stock exhibited bearish momentum with weekly MACD readings negative and daily moving averages confirming a downtrend. The price remained closer to its 52-week low of Rs.32.14 than its high of Rs.52.65, underscoring sustained downward pressure. The downgrade also reflected the stock’s underperformance relative to the Sensex, which had gained 5.16% over the past year while Dwarikesh Sugar lost 30.60%.

Tuesday, 3 February: Modest Recovery Amid Broad Market Rally

On 3 February, the stock rebounded slightly, closing at Rs.34.51, up 0.97% on the day. This modest gain came alongside a strong Sensex rally of 2.63%, which closed at 36,755.96. Despite the broader market strength, Dwarikesh Sugar’s volume declined to 50,780 shares, indicating limited buying interest.

The slight recovery did little to alter the prevailing bearish technical outlook, as key indicators remained negative. The stock’s valuation, with a price-to-book ratio of 0.9 and a low return on equity of 2%, continued to reflect market scepticism about near-term growth prospects.

Wednesday, 4 February: Continued Technical Weakness Despite Small Gains

The stock edged higher again on 4 February, closing at Rs.34.71, a 0.58% increase. The Sensex also advanced by 0.37% to 36,890.21. However, trading volumes dropped sharply to 10,086 shares, signalling thin market participation.

Technical indicators remained predominantly bearish. The Bollinger Bands on weekly and monthly charts continued to signal downside volatility, while the MACD and KST oscillators showed mixed momentum with weekly bearishness and mildly bullish monthly signals. The Relative Strength Index (RSI) remained neutral, suggesting indecision among traders.

Thursday, 5 February: Price Retreats on Lower Volumes

The stock reversed course on 5 February, closing at Rs.34.17, down 1.56% on the day, while the Sensex declined 0.53%. Volume increased modestly to 19,378 shares but remained below earlier weekly averages. This decline reflected ongoing technical weakness and investor caution amid the company’s challenging financial backdrop.

Interest expenses rose 36.59% to ₹14.82 crores for the nine months ended December 2025, further pressuring profitability. The operating profit to interest coverage ratio plunged to -23.57 times, indicating earnings are insufficient to cover interest costs. These financial headwinds contributed to the negative sentiment.

Friday, 6 February: Mixed Technical Signals Amid Persistent Headwinds

On the final trading day of the week, Dwarikesh Sugar closed at Rs.34.36, up 0.56%, while the Sensex gained 0.10%. The stock traded in a narrow range between Rs.33.90 and Rs.35.01, remaining closer to its 52-week low than its high. Technical momentum showed signs of mild improvement with the monthly MACD and KST oscillators turning mildly bullish, and weekly On-Balance Volume indicating some accumulation.

However, daily moving averages and weekly MACD remained bearish, signalling that short-term selling pressure persists. The Relative Strength Index continued to show no clear directional bias, reflecting market indecision. The Mojo Score stayed at 26.0, confirming a Strong Sell rating and highlighting the elevated risks for investors.

Weekly Price Performance: Stock vs Sensex

Key Takeaways

Negative Financial Trends: The company’s sharp net loss of ₹32.62 crores in Q2 FY25-26 and declining sales and operating profit over five years highlight ongoing operational challenges.

Technical Weakness: Predominantly bearish technical indicators, including weekly MACD and daily moving averages, have pressured the stock price throughout the week.

Valuation and Risk: Despite a modest price-to-book ratio of 0.9 and low debt levels, the stock’s valuation reflects market concerns about growth and profitability risks.

Mixed Momentum Signals: Mildly bullish monthly MACD and KST oscillators, along with weekly On-Balance Volume accumulation, suggest potential stabilisation but no confirmed reversal.

Underperformance vs Sensex: The stock declined 2.30% this week while the Sensex gained 1.51%, continuing a pattern of underperformance over multiple timeframes.

Conclusion

Dwarikesh Sugar Industries Ltd’s week was marked by persistent challenges both fundamentally and technically. The downgrade to a Strong Sell rating reflects deteriorating financial health and bearish momentum that have weighed on the stock price. While some monthly technical indicators hint at a possible easing of downward pressure, the prevailing short-term signals remain negative. The stock’s continued underperformance relative to the Sensex and sector peers underscores the risks facing investors. Caution remains warranted as the company navigates a difficult operating environment with limited signs of near-term recovery.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →