Stock Price Movement and Market Context
On 26 Feb 2026, Facor Alloys Ltd’s share price declined by 4.18%, closing at Rs.2.33, the lowest level recorded in the past year. This drop represents a substantial underperformance compared to the ferrous metals sector, which outpaced the stock by 6.27% on the same day. 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 sustained bearish trend.
In contrast, the broader market benchmark, the Sensex, opened higher at 82,418.78 points, gaining 142.71 points (0.17%) and was trading near 82,398.93 points (0.15%) at the time. The Sensex remains within 4.56% of its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating a generally positive medium-term market trend.
Long-Term Performance and Valuation Concerns
Facor Alloys Ltd’s one-year performance starkly contrasts with the broader market. The stock has declined by 43.24% over the past year, while the Sensex has appreciated by 10.45%. The 52-week high for Facor Alloys was Rs.4.89, underscoring the steep depreciation in value. This persistent underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index over the past three annual periods.
The company’s valuation metrics reflect elevated risk levels. Its average EBIT to interest ratio stands at -5.29, indicating challenges in servicing debt obligations. Additionally, the average return on equity (ROE) is a modest 2.72%, signalling limited profitability relative to shareholders’ funds. The stock’s historical valuations suggest it is trading at a riskier level compared to its own past averages.
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Financial Results and Profitability Trends
The company reported flat financial results for the quarter ended December 2025. The profit after tax (PAT) stood at a loss of Rs.4.37 crores, representing a sharp decline of 96.2% compared to the previous four-quarter average. This significant contraction in profitability has contributed to the negative sentiment surrounding the stock.
Moreover, Facor Alloys Ltd has recorded negative EBITDA figures, further highlighting the challenges in generating operational cash flow. The combination of losses and weak profitability metrics has weighed heavily on investor confidence and market valuation.
Shareholding and Market Pressure
A notable factor exerting downward pressure on the stock price is the high proportion of promoter shares pledged, which currently stands at 70.91%. In a declining market environment, such a high level of pledged shares can lead to forced selling, exacerbating price declines and increasing volatility.
This structural risk, combined with the company’s financial performance, has contributed to the stock’s classification as a “Strong Sell” by MarketsMOJO, with a Mojo Score of 12.0 and a Market Cap Grade of 4. This rating was assigned on 13 Feb 2025, reflecting the deteriorated fundamentals and elevated risk profile.
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Sector and Industry Positioning
Facor Alloys Ltd operates within the ferrous metals industry, a sector that has experienced mixed performance amid fluctuating commodity prices and demand cycles. Despite the sector’s occasional resilience, Facor Alloys has not been able to capitalise on any favourable market conditions, as reflected in its sustained underperformance relative to sector peers.
The stock’s decline to Rs.2.33, well below its 52-week high of Rs.4.89, underscores the challenges faced by the company in maintaining competitive positioning and financial stability within the ferrous metals space.
Summary of Key Metrics
To summarise, Facor Alloys Ltd’s key financial and market metrics as of 26 Feb 2026 are:
- New 52-week low price: Rs.2.33
- One-year stock return: -43.24%
- Sensex one-year return: +10.45%
- Promoter shares pledged: 70.91%
- EBIT to interest ratio (average): -5.29
- Return on equity (average): 2.72%
- Profit after tax (latest quarter): Rs.-4.37 crores (down 96.2%)
- Mojo Score: 12.0 (Strong Sell)
- Market Cap Grade: 4
The stock’s performance and financial indicators reflect ongoing challenges that have contributed to its current valuation and market standing.
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