Recent Price Movement and Market Context
On 26 Nov 2025, Facor Alloys recorded a closing price of Rs.2.61, representing a decline of 3.97% on the day. This price marks the lowest level the stock has traded at in the past year, down from its 52-week high of Rs.6.18. Over the last three trading sessions, the stock has experienced a cumulative return of -7.44%, indicating a sustained downward trend.
The stock’s performance today notably lagged behind its sector peers, underperforming the ferrous metals sector by 5.24%. This contrasts with the broader market environment, where the Sensex index rose by 1.13% to close at 85,539.65, approaching its own 52-week high of 85,801.70. The Sensex has been on a three-week consecutive rise, gaining 2.79% during this period, supported by bullish moving averages and a strong showing from mid-cap stocks.
Technical Indicators Highlight Weak Momentum
Facor Alloys is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests that the stock is facing downward pressure across multiple timeframes, with no immediate technical support from these commonly watched indicators. The consistent trading below these averages often signals a lack of positive momentum and can be a factor in continued price weakness.
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Financial Performance and Profitability Metrics
Facor Alloys’ financial results have reflected subdued profitability over recent periods. The company reported a net loss after tax (PAT) of Rs.-6.40 crores in the latest quarter, representing a decline of 382.3% compared to the previous four-quarter average. Earnings before interest and taxes (EBIT) and profit before tax excluding other income (PBT less OI) also showed negative figures, with the latter at Rs.-7.46 crores and earnings before depreciation, interest, and taxes (PBDIT) at Rs.-5.95 crores for the quarter.
These figures highlight the challenges Facor Alloys faces in generating positive earnings, with the company’s average return on equity (ROE) standing at 2.72%, indicating limited profitability relative to shareholders’ funds. Additionally, the company’s ability to service its debt is constrained, as reflected by an average EBIT to interest ratio of -5.38, signalling that operating earnings are insufficient to cover interest expenses.
Shareholding and Valuation Considerations
One notable factor adding pressure to the stock price is the high proportion of promoter shares pledged, which stands at 70.91%. In volatile or declining markets, such a high level of pledged shares can contribute to further downward pressure on the stock, as forced selling or margin calls may occur.
From a valuation perspective, Facor Alloys is trading at levels considered risky compared to its historical averages. Over the past year, the stock has generated a return of -50.93%, while its profits have fallen by 98.4%. This performance contrasts sharply with the broader market, where the Sensex has recorded a positive return of 6.92% over the same period.
Long-Term Performance Relative to Benchmarks
Facor Alloys has consistently underperformed the BSE500 index over the last three years, with annual returns lagging behind the benchmark in each period. This persistent underperformance underscores the challenges the company has faced in maintaining competitive growth and profitability within the ferrous metals sector.
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Industry and Sector Overview
Facor Alloys operates within the ferrous metals industry, a sector that has experienced mixed performance amid fluctuating commodity prices and demand cycles. While the broader market and mid-cap segments have shown resilience and gains recently, Facor Alloys’ stock price trajectory has diverged, reflecting company-specific factors and financial metrics that have weighed on investor sentiment.
The company’s market capitalisation grade is relatively low, indicating a smaller market presence compared to larger peers. This, combined with the stock’s current trading below all major moving averages, suggests that Facor Alloys remains under pressure in the near term.
Summary of Key Price and Performance Data
To summarise, Facor Alloys’ stock has reached Rs.2.61, its lowest level in 52 weeks, after a three-day losing streak. The stock’s year-on-year return stands at -50.93%, contrasting with the Sensex’s positive 6.92% return. The company’s financial results show negative earnings and limited profitability, with a high proportion of pledged promoter shares adding to valuation concerns. Meanwhile, the broader market environment remains positive, with the Sensex near its 52-week high and mid-cap stocks leading gains.
Conclusion
Facor Alloys’ recent price action and financial data illustrate the challenges the company faces within the ferrous metals sector. The stock’s fall to a 52-week low of Rs.2.61 reflects ongoing pressures from weak earnings, high pledged shareholding, and technical indicators signalling subdued momentum. While the broader market environment remains constructive, Facor Alloys continues to trade under significant headwinds, as evidenced by its underperformance relative to sector peers and benchmark indices.
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