Epigral Ltd Stock Falls to 52-Week Low of Rs.1070.3 Amidst Continued Underperformance

Stock Performance and Market Context

On 23 Jan 2026, Epigral Ltd’s shares touched an intraday low of Rs.1070.3, representing a 2.08% drop from the previous close and underperforming its sector by 1.34%. The stock’s day change was recorded at -1.93%. Notably, Epigral is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

In contrast, the Sensex opened flat with a marginal gain of 28.57 points but later declined by 318.62 points. While the Sensex is trading below its 50-day moving average, the 50DMA remains above the 200DMA, indicating a mixed technical backdrop for the broader market.

Long-Term and Recent Performance Metrics

Over the past year, Epigral Ltd’s stock has declined by 37.09%, significantly underperforming the Sensex, which gained 7.11% over the same period. The stock’s 52-week high was Rs.2114.3, highlighting the extent of the recent correction. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index over the last three years, one year, and three months.

Financially, the company’s operating profit has contracted at an annualised rate of -5.49% over the last five years, reflecting subdued growth trends. The September 2025 quarter results further underline this trend, with Profit Before Tax (PBT) excluding other income falling by 45.2% to Rs.67.91 crores compared to the previous four-quarter average. Similarly, Profit After Tax (PAT) declined by 52.6% to Rs.51.22 crores in the same period.

Interest expenses have increased notably, with a 37.3% rise over the nine months to Rs.56.98 crores, adding to the financial pressures faced by the company.

Valuation and Financial Strength

Despite the recent price decline, Epigral Ltd exhibits several financial strengths. The company maintains a high Return on Capital Employed (ROCE) of 23.19%, indicating efficient utilisation of capital. Its debt servicing capability is robust, with a low Debt to EBITDA ratio of 1.34 times, suggesting manageable leverage levels.

Valuation metrics also present an interesting picture. The company’s ROCE of 19.3% is paired with an enterprise value to capital employed ratio of 2, which is considered very attractive. The stock currently trades at a discount relative to its peers’ average historical valuations, offering a valuation gap in the Specialty Chemicals sector.

Over the past year, while the stock price has declined by 37.09%, the company’s profits have increased by 37.1%, resulting in a PEG ratio of 0.4. This divergence between earnings growth and share price performance highlights the complex dynamics influencing the stock.

Shareholding and Market Sentiment

The majority shareholding in Epigral Ltd remains with the promoters, reflecting stable ownership. The company’s Mojo Score stands at 31.0, with a Mojo Grade of Sell as of 26 Dec 2025, an improvement from a previous Strong Sell rating. The Market Cap Grade is rated at 3, indicating a mid-tier market capitalisation status within its sector.

Summary of Key Concerns

The stock’s decline to Rs.1070.3, its lowest level in 52 weeks, reflects a combination of factors including subdued long-term growth, recent quarterly profit contractions, and rising interest expenses. The persistent underperformance relative to the Sensex and BSE500 indices over multiple time frames underscores the challenges faced by the company in regaining investor confidence.

Trading below all major moving averages further emphasises the current bearish trend. While the broader market shows some technical resilience, Epigral Ltd’s share price continues to reflect caution among market participants.

Financial Metrics at a Glance

Operating profit growth rate (5 years): -5.49% annually

Profit Before Tax (Sep 2025 quarter): Rs.67.91 crores (-45.2% vs previous 4Q average)

Profit After Tax (Sep 2025 quarter): Rs.51.22 crores (-52.6% vs previous 4Q average)

Interest expense (9 months): Rs.56.98 crores (+37.3%)

ROCE: 23.19%

Debt to EBITDA ratio: 1.34 times

PEG ratio: 0.4

Market Capitalisation and Ratings

Mojo Score: 31.0

Mojo Grade: Sell (upgraded from Strong Sell on 26 Dec 2025)

Market Cap Grade: 3

Conclusion

Epigral Ltd’s stock reaching a 52-week low of Rs.1070.3 highlights the ongoing challenges within the Specialty Chemicals sector and the company’s specific performance issues. While financial metrics indicate operational strengths such as high ROCE and manageable debt, the recent earnings decline and share price underperformance have weighed heavily on market sentiment. The stock’s valuation discount relative to peers and improved Mojo Grade suggest a nuanced picture, but the prevailing trend remains subdued as of January 2026.

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