Franklin Industries Ltd Falls to 52-Week Low Amid Weak Financial Performance

Stock Price Movement and Market Context

The stock of Franklin Industries Ltd has declined sharply, closing at Rs.0.59, which is not only its lowest price in the past year but also an all-time low. This represents a steep fall from its 52-week high of Rs.2.13, reflecting a year-on-year depreciation of approximately 72.3%. On the day of this new low, the stock underperformed its sector by 8.63% and recorded a day change of -7.69%. The share price is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

In contrast, the broader market has shown resilience. The Sensex opened 118.50 points higher and is trading at 84,924.59, up 0.29% on the day. The index remains close to its 52-week high of 86,159.02, just 1.45% away, and is supported by bullish moving averages with the 50-day DMA above the 200-day DMA. Additionally, the BSE Small Cap index, which includes micro-cap stocks like Franklin Industries, gained 0.79% today, highlighting a divergence between the stock’s performance and the broader small-cap segment.

Financial Performance and Profitability Trends

Franklin Industries Ltd’s financial results have shown marked declines over recent quarters. The company reported net sales of Rs.6.60 crores in the quarter ending September 2025, which is a sharp contraction of 75.65% compared to the corresponding period last year. Profit before tax excluding other income (PBT less OI) plummeted by 99.29% to Rs.0.03 crore, while profit after tax (PAT) fell by 98.5% to Rs.0.06 crore. These figures underscore a significant erosion in the company’s earnings capacity.

Over the past year, the company’s profits have declined by 89.5%, a trend that has weighed heavily on investor sentiment and share price performance. The return on equity (ROE) stands at a modest 1.7%, indicating limited profitability relative to shareholder funds. Despite this, the stock trades at a price-to-book value of 0.4, which suggests a valuation that is somewhat premium compared to the average historical valuations of its peers in the Trading & Distributors sector.

Market Capitalisation and Shareholding Pattern

Franklin Industries Ltd holds a Market Cap Grade of 4, reflecting its micro-cap status within the sector. The majority of its shares are held by non-institutional investors, which may contribute to lower liquidity and higher volatility in the stock price. The company’s Mojo Score currently stands at 12.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 5 August 2025. This grading reflects the deteriorated fundamental strength and weak long-term outlook based on the company’s financial metrics and market performance.

Comparative Performance and Sectoral Context

When compared to the Sensex, which has delivered a positive return of 8.70% over the last year, Franklin Industries Ltd’s stock has underperformed significantly with a negative return of 66.65%. This divergence highlights the challenges faced by the company relative to the broader market and sector peers. While the Trading & Distributors sector has seen mixed performances, Franklin Industries’ steep decline stands out as a notable underperformance within its industry group.

Technical Indicators and Trading Signals

The technical outlook for Franklin Industries Ltd remains subdued. The stock is trading below all major moving averages, including short-term (5-day, 20-day) and long-term (50-day, 100-day, 200-day) averages. This pattern typically signals sustained bearish momentum and a lack of upward price support. The gap between the current price and these moving averages suggests that the stock is in a downtrend phase, with limited immediate technical support levels.

Summary of Key Metrics

To summarise, Franklin Industries Ltd’s key financial and market metrics as of 31 December 2025 are as follows:

• New 52-week and all-time low price: Rs.0.59


• 52-week high price: Rs.2.13


• Yearly stock return: -66.65%


• Net sales decline (Q Sep 2025): -75.65%


• PBT less other income decline (Q Sep 2025): -99.29%


• PAT decline (Q Sep 2025): -98.5%


• Return on equity: 1.7%


• Price to book value: 0.4


• Mojo Score: 12.0 (Strong Sell)


• Market Cap Grade: 4


• Majority shareholders: Non-institutional

The combination of weak sales, sharply reduced profitability, and technical weakness has culminated in the stock reaching this new low. While the broader market and sector indices have shown relative strength, Franklin Industries Ltd’s share price has not mirrored this trend, reflecting company-specific challenges.

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