Stock Performance and Market Context
On 20 Jan 2026, Franklin Industries Ltd's share price hit an all-time low of Rs.0.49, reflecting a sharp decline of 9.09% on the day. This drop comes after two consecutive days of losses, during which the stock has fallen by 10.71%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
In comparison, the broader sector of Construction - Real Estate declined by 2.34% on the same day, while the Sensex index fell by 0.45%, closing at 82,872.26 points. The Sensex has been on a three-week losing streak, down 3.37% over that period, and is currently trading below its 50-day moving average, though the 50DMA remains above the 200DMA. Despite these market pressures, Franklin Industries Ltd's decline has been notably steeper than both its sector and the benchmark index.
Over the past year, Franklin Industries Ltd has underperformed significantly, with a total return of -72.32%, compared to the Sensex's positive return of 7.50%. The stock's 52-week high was Rs.1.97, underscoring the extent of the recent decline.
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Financial Performance and Valuation Metrics
Franklin Industries Ltd's recent quarterly results reveal significant declines in key financial metrics. Net sales for the quarter stood at Rs.6.60 crores, down 75.65% year-on-year. Profit before tax excluding other income (PBT less OI) was a marginal Rs.0.03 crores, a decline of 99.29%, while profit after tax (PAT) fell by 98.5% to Rs.0.06 crores. These figures highlight a sharp contraction in the company's revenue and profitability.
The company’s return on equity (ROE) is reported at 1.7%, indicating modest profitability relative to shareholder equity. The price-to-book value ratio stands at 0.4, suggesting the stock is trading at a discount to its book value. However, this valuation is considered a premium when compared to the average historical valuations of its peers within the Trading & Distributors sector.
Despite the low valuation multiples, the company’s fundamental strength remains weak, as reflected in its operating losses and deteriorating financial results. The Mojo Score assigned to Franklin Industries Ltd is 12.0, with a Mojo Grade of Strong Sell, upgraded from a previous Sell rating on 5 Aug 2025. The market capitalisation grade is 4, indicating a relatively small market cap within its sector.
Shareholding and Sectoral Considerations
The majority of Franklin Industries Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading patterns. The company operates within the Trading & Distributors sector, which has experienced mixed performance relative to the broader market. The sector’s decline of 2.34% on the day contrasts with the more severe losses seen in Franklin Industries Ltd’s stock price.
While the Sensex remains 3.97% below its 52-week high of 86,159.02, Franklin Industries Ltd’s stock has moved in the opposite direction, reaching its lowest point in over a year. This divergence underscores the company-specific challenges impacting the stock’s valuation and market sentiment.
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Summary of Key Indicators
To summarise, Franklin Industries Ltd’s stock has experienced a significant decline, reaching Rs.0.49, its lowest level in 52 weeks and all time. The stock’s underperformance relative to the Sensex and its sector is marked, with a year-to-date return of -72.32% against the Sensex’s 7.50% gain. The company’s financial results reveal steep declines in sales and profits, with operating losses contributing to a weak fundamental profile.
The stock’s trading below all major moving averages and its strong sell Mojo Grade reflect ongoing challenges. While the valuation metrics such as price-to-book ratio suggest some discount, the overall financial health and market performance indicate continued pressure on the stock price.
Investors and market participants will note the divergence between Franklin Industries Ltd’s performance and broader market trends, highlighting the importance of company-specific factors in recent price movements.
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