Recent Price Movement and Market Context
On 24 Nov 2025, Electrosteel Castings touched an intraday low of Rs.73.6, representing a fall of 2.3% on the day. This decline extends a six-day losing streak during which the stock has recorded a cumulative return of -8.49%. The stock’s performance today lagged behind the Iron & Steel Products sector by 2.51%, highlighting its relative weakness within the industry.
Notably, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent downward trend. This contrasts with the broader market, where the Sensex opened 88.12 points higher and is currently trading at 85,455.79, up 0.26%. The Sensex is approaching its 52-week high of 85,801.70 and has recorded a 2.69% gain over the past three weeks, supported by strong performances from mega-cap stocks.
Financial Performance Overview
Electrosteel Castings’ financial results have shown a challenging trajectory over recent quarters. The company reported a decline in operating profit by 5.16% in the quarter ending September 2025, contributing to a series of four consecutive quarters with negative results. The net profit after tax (PAT) for the quarter stood at Rs.78.29 crore, reflecting a 45.3% reduction compared to the average of the previous four quarters.
Net sales for the quarter were recorded at Rs.1,395.79 crore, the lowest in recent periods, while the return on capital employed (ROCE) for the half-year was 8.88%, indicating subdued capital efficiency. These figures have weighed on the stock’s valuation and market sentiment.
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Long-Term Growth and Valuation Metrics
Despite recent setbacks, Electrosteel Castings has demonstrated healthy long-term growth trends. Net sales have expanded at an annual rate of 20.95%, while operating profit has grown at 20.34% annually. These figures suggest underlying business expansion over a longer horizon.
The company’s ROCE over the past year is reported at 7.1%, and it maintains an enterprise value to capital employed ratio of 0.8, which is considered attractive relative to its peers. The stock is trading at a discount compared to the average historical valuations of similar companies in the Iron & Steel Products sector.
However, the stock’s one-year return of -48.98% and a profit decline of 43.1% over the same period indicate significant challenges in translating growth into consistent profitability and shareholder returns.
Shareholding and Institutional Participation
Institutional investors currently hold 19.73% of Electrosteel Castings’ equity, having reduced their stake by 0.98% in the previous quarter. Institutional participation is often viewed as a barometer of confidence in a company’s fundamentals, and this reduction may reflect a cautious stance amid the company’s recent financial performance.
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Comparative Market Performance
Over the past year, Electrosteel Castings has underperformed the broader market significantly. While the BSE500 index has generated returns of 6.77% during this period, the stock has recorded a negative return of 48.98%. This divergence underscores the challenges faced by the company relative to the overall market environment.
The stock’s 52-week high was Rs.171.25, indicating a substantial decline of over 57% from that peak to the current 52-week low of Rs.73.6. This wide price range reflects volatility and market reassessment of the company’s prospects.
Sector and Industry Context
Electrosteel Castings operates within the Iron & Steel Products industry, a sector that has experienced mixed performance amid fluctuating demand and input cost pressures. While the broader market indices and mega-cap stocks have shown resilience, smaller companies in the sector have faced headwinds impacting their stock valuations.
The company’s current market capitalisation grade is 3, indicating a mid-sized presence within the market. Its recent price movements and financial results suggest that it is navigating a challenging phase relative to its sector peers.
Summary of Key Metrics
To summarise, Electrosteel Castings’ key financial and market metrics as of 24 Nov 2025 include:
- New 52-week low price: Rs.73.6
- Six consecutive days of price decline, totalling -8.49% returns
- Operating profit decline of 5.16% in the latest quarter
- Four consecutive quarters of negative results
- Quarterly PAT at Rs.78.29 crore, down 45.3% versus prior four-quarter average
- Half-year ROCE at 8.88%
- Net sales for the quarter at Rs.1,395.79 crore, the lowest in recent periods
- Institutional shareholding at 19.73%, reduced by 0.98% in the previous quarter
- One-year stock return of -48.98% versus BSE500’s 6.77%
These data points collectively illustrate the current state of Electrosteel Castings as it navigates a period of subdued market performance and financial pressures.
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