Excel Industries Falls 5.31%: 2 Key Factors Driving the Weekly Decline

Monday, 9 February 2026: Rating Upgrade to Sell Amid Mixed Signals

Excel Industries began the week with a notable downgrade in market sentiment despite an official upgrade in its rating from Strong Sell to Sell by MarketsMOJO on 6 February. This nuanced shift reflected a complex balance between deteriorating financial fundamentals and improving valuation and technical indicators. On 9 February, the stock closed at ₹992.00, down 1.13% from the previous close, while the Sensex gained 1.04%, closing at 37,113.23.

The downgrade in rating was driven primarily by weak quarterly results for the period ending December 2025. Profit Before Tax excluding other income plunged 63.1% to ₹6.10 crore, and Profit After Tax fell 54.1% to ₹8.44 crore. Net sales contracted by 8.8% to ₹233.54 crore, signalling operational challenges. Non-operating income accounted for nearly 46% of PBT, underscoring the fragility of core earnings. Despite these headwinds, valuation metrics such as a PE ratio of 16.94 and a price-to-book value of 0.71 remained attractive relative to peers, providing some cushion.

Tuesday and Wednesday, 10-11 February 2026: Continued Price Pressure and Valuation Reassessment

The stock continued to decline on 10 and 11 February, closing at ₹985.30 (-0.68%) and ₹974.35 (-1.11%) respectively, while the Sensex advanced modestly on both days. Trading volumes fluctuated, with a notable increase to 454 lakhs on 10 February, indicating some investor activity amid the price decline. On 11 February, MarketsMOJO upgraded Excel Industries’ valuation rating from Attractive to Very Attractive, reflecting improved price appeal despite ongoing profitability concerns.

This valuation upgrade was supported by a lower PE ratio of 16.34 and a price-to-book ratio of 0.69, both below many specialty chemical peers such as Punjab Chemicals (PE 22.19) and 3B Blackbio (PE 25.18). The enterprise value to EBITDA multiple also improved to 9.75, signalling a more reasonable valuation relative to earnings. However, profitability metrics remained subdued, with ROCE at 4.23% and ROE at 4.07%, and dividend yield modest at 1.40%. The stock’s relative performance was mixed, outperforming the Sensex over the past week and month but underperforming over longer horizons.

Thursday and Friday, 12-13 February 2026: Technical Signals and Final Weekly Decline

On 12 February, Excel Industries showed a slight recovery, closing at ₹975.75, up 0.14%, while the Sensex declined 0.56%. However, this was short-lived as the stock fell sharply on 13 February, closing at ₹950.05, down 2.63%, against a Sensex decline of 1.40%. The weekly volume remained moderate, with 302 lakhs traded on the final day. Technical indicators during the week suggested tentative stabilisation, with weekly MACD and KST mildly bullish, though monthly trends remained bearish. Moving averages and RSI indicated a lack of strong directional conviction, reflecting investor caution amid mixed signals.

The stock’s weekly decline of 5.31% significantly underperformed the Sensex’s 0.54% drop, highlighting persistent challenges despite valuation improvements. The company’s low institutional interest, modest returns on capital, and negative earnings trend continue to weigh on sentiment.

Daily Price Performance: Excel Industries vs Sensex

Key Takeaways

Financial Performance: Excel Industries’ recent quarterly results revealed significant declines in profitability and sales, with PBT excluding other income down 63.1% and PAT down 54.1%. This deterioration remains a critical concern for investors, reflecting operational challenges in a competitive specialty chemicals sector.

Valuation Appeal: Despite weak earnings, the stock’s valuation improved during the week, with PE and price-to-book ratios falling below many peers. The upgrade to a Very Attractive valuation rating suggests the market is pricing in current risks, offering a potential margin of safety for value investors.

Technical Signals: Mixed technical indicators point to tentative stabilisation but no clear upward momentum. Mildly bullish weekly momentum contrasts with bearish monthly trends, indicating caution in the near term.

Relative Performance: The stock underperformed the Sensex by 4.77% over the week, highlighting ongoing challenges in regaining investor confidence amid sector headwinds and modest institutional interest.

Conclusion

Excel Industries Ltd’s week was marked by a complex interplay of deteriorating financial fundamentals and improving valuation metrics. The upgrade from Strong Sell to Sell by MarketsMOJO reflected cautious optimism tempered by weak earnings and sales trends. Although valuation improvements and some technical signals offered partial support, the stock’s 5.31% weekly decline and underperformance relative to the Sensex underscore persistent risks. Investors should continue to monitor upcoming financial results and sector developments closely, as the company navigates a challenging operating environment with modest returns and limited institutional backing.

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