Stock Performance and Market Context
On 1 Dec 2025, Godavari Drugs touched Rs.74, its lowest price point in the past year. This level contrasts sharply with its 52-week high of Rs.133.9, indicating a substantial contraction in market valuation. Despite the stock’s decline, it outperformed its sector by 1.53% on the day, suggesting some relative resilience within a challenging phase.
The stock currently trades below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a persistent downtrend. This technical positioning highlights the difficulty the stock faces in regaining upward momentum.
Meanwhile, the broader market environment shows a contrasting picture. The Sensex opened higher at 86,065.92 points, gaining 359.25 points (0.42%) and was trading at 85,865.67 points (0.19%) during the session. The index remains close to its 52-week high of 86,055.86, supported by a three-week consecutive rise and bullish moving averages, with the 50-day moving average above the 200-day moving average. Small-cap stocks led the market, with the BSE Small Cap index gaining 0.39%.
Financial Performance Overview
Godavari Drugs’ financial metrics over recent periods reveal a challenging environment. The company’s net sales for the nine months ended showed a contraction of 21.64%, amounting to Rs.75.96 crores. Profit after tax (PAT) for the same period stood at Rs.2.93 crores, reflecting a decline of 45.83%. Operating cash flow for the year was recorded at Rs.11.20 crores, the lowest level observed in recent years.
Over the last five years, the compound annual growth rate (CAGR) for net sales was negative at -0.27%, indicating subdued long-term revenue growth. The company’s ability to service debt is constrained, with a Debt to EBITDA ratio of 3.27 times, pointing to elevated leverage relative to earnings before interest, taxes, depreciation, and amortisation.
These financial indicators correspond with the stock’s performance, which has generated a return of -39.87% over the past year, underperforming the Sensex’s 7.60% gain during the same period. The stock has also lagged behind the BSE500 index over one, three years, and three months, underscoring persistent underperformance relative to broader market benchmarks.
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Valuation and Comparative Metrics
Despite the subdued financial results, Godavari Drugs exhibits a return on capital employed (ROCE) of 9.1%, which is considered attractive within its sector. The enterprise value to capital employed ratio stands at 1.1, suggesting the stock is trading at a discount relative to its capital base.
This valuation contrasts with the company’s peers, where historical averages tend to be higher. The stock’s discounted valuation reflects the market’s assessment of the company’s recent performance and financial position.
Profitability trends over the past year show a decline of 44.5%, aligning with the negative returns generated by the stock. The majority shareholding remains with promoters, maintaining control over corporate decisions.
Recent Price Movement and Technical Signals
After two consecutive days of price decline, Godavari Drugs recorded a gain, indicating a minor reversal in the short term. However, the overall trend remains downward, with the stock trading below all major moving averages. This technical setup suggests that the stock is still facing downward pressure despite the recent uptick.
The day’s decline of 1.73% adds to the stock’s recent volatility, even as it marginally outperformed its sector. The gap between the stock’s current price and its 52-week high of Rs.133.9 highlights the extent of the price contraction over the past year.
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Sector and Industry Positioning
Godavari Drugs operates within the Pharmaceuticals & Biotechnology sector, which has seen mixed performance in recent months. While the broader market indices, including the Sensex, have shown gains and remain near their yearly highs, Godavari Drugs’ stock price trajectory diverges from this trend.
The company’s market capitalisation grade is relatively low, reflecting its smaller scale compared to larger industry players. This positioning may influence the stock’s liquidity and investor attention within the sector.
Overall, the stock’s current valuation and price levels reflect a combination of subdued financial results, elevated leverage, and technical factors that have contributed to its 52-week low.
Summary of Key Metrics
To summarise, Godavari Drugs’ key financial and market metrics as of 1 Dec 2025 include:
- New 52-week low price: Rs.74
- 52-week high price: Rs.133.9
- One-year stock return: -39.87%
- Sensex one-year return: 7.60%
- Net sales (9 months): Rs.75.96 crores, down 21.64%
- PAT (9 months): Rs.2.93 crores, down 45.83%
- Operating cash flow (year): Rs.11.20 crores
- Debt to EBITDA ratio: 3.27 times
- ROCE: 9.1%
- Enterprise value to capital employed: 1.1
These figures provide a comprehensive view of the company’s recent financial health and market standing.
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