Stock Performance and Market Context
On the day the new low was recorded, Garware Synthetics Ltd’s stock fell by 3.98%, underperforming the Trading & Distributors sector by 3.97%. The share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex opened 121.96 points lower but remained relatively resilient, trading at 85,583.09, just 0.67% shy of its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day average, indicating a bullish trend overall, while mid-cap stocks led gains with a modest 0.08% increase in the BSE Mid Cap index.
Garware Synthetics Ltd’s one-year performance starkly contrasts with the Sensex’s 8.01% gain, as the stock has declined by 61.46% over the same period. The 52-week high for the stock was Rs.39.79, highlighting the extent of the recent depreciation.
Financial and Fundamental Analysis
The company’s financial profile presents several challenges. Garware Synthetics Ltd currently holds a negative book value, which is a key factor contributing to its classification as a Strong Sell with a Mojo Score of 17.0 and a Mojo Grade of Strong Sell, as updated on 10 Dec 2025. This negative book value indicates that the company’s liabilities exceed its assets, raising concerns about its long-term financial stability.
Over the past five years, the company’s net sales have grown at a modest annual rate of 7.39%, while operating profit has remained flat, showing no growth. The average debt-to-equity ratio stands at zero, indicating a high debt burden relative to equity, which further complicates the company’s financial position. Despite this, profits have risen by 42% over the past year, resulting in a low PEG ratio of 0.3, which suggests that the stock is trading at a valuation that does not fully reflect its earnings growth potential.
Built for the long haul! Consecutive quarters of strong growth landed this Small Cap from Chemicals on our Reliable Performers list. Sustainable gains are clearly ahead!
- - Long-term growth stock
- - Multi-quarter performance
- - Sustainable gains ahead
Long-Term and Recent Performance Trends
Garware Synthetics Ltd has underperformed not only in the last year but also over longer periods. The stock has lagged behind the BSE500 index over the past three years, one year, and three months, indicating persistent challenges in generating shareholder value. The negative returns of 61.46% over the last year underscore the stock’s subdued performance relative to broader market indices.
Key Financial Metrics from Recent Quarters
Despite the overall decline in share price, some recent financial metrics show pockets of improvement. The company reported its highest Return on Capital Employed (ROCE) in the half-year period at 9.54%. Quarterly figures also indicate the highest PBDIT at Rs.0.31 crore and PBT less other income at Rs.0.18 crore, signalling some operational efficiencies in recent months. However, these positive results have not translated into a reversal of the stock’s downward trend.
Shareholding Pattern
The majority of Garware Synthetics Ltd’s shares are held by non-institutional investors, which may influence the stock’s liquidity and trading dynamics. Institutional participation appears limited, which can affect the stock’s stability and response to market developments.
Considering Garware Synthetics Ltd? Wait! SwitchER has found potentially better options in Trading & Distributors and beyond. Compare this small-cap with top-rated alternatives now!
- - Better options discovered
- - Trading & Distributors + beyond scope
- - Top-rated alternatives ready
Valuation and Risk Considerations
The stock’s current valuation is considered risky when compared to its historical averages. The negative book value and weak long-term fundamental strength contribute to this assessment. While the company’s profits have increased, the stock’s price decline suggests that the market is factoring in concerns about sustainability and financial health. The average debt-to-equity ratio of zero, combined with the negative book value, points to a capital structure that may be under strain.
Summary of Market and Stock Dynamics
In summary, Garware Synthetics Ltd’s stock has reached a new 52-week low of Rs.11.81 amid a market environment where broader indices remain relatively stable or positive. The company’s financial metrics reveal a complex picture of modest sales growth, flat operating profit, and recent improvements in profitability metrics, yet these have not been sufficient to support the share price. The stock’s classification as a Strong Sell with a Mojo Grade of 17.0 reflects these ongoing concerns.
Investors and market participants will note the divergence between the company’s recent financial results and its stock price performance, underscoring the challenges faced in regaining market confidence.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today
