Stock Price Movement and Market Context
On the day the new low was recorded, Goodricke Group’s share price fell by 0.37%, aligning with the sector’s overall performance. The stock 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. This contrasts with the broader market, where the Sensex opened flat but subsequently declined by 238.81 points, or 0.33%, closing at 82,968.57. Despite this, the Sensex remains within 3.85% of its 52-week high of 86,159.02, highlighting Goodricke’s relative underperformance.
Over the last three weeks, the Sensex has recorded a cumulative loss of 3.26%, while Goodricke Group’s stock has fallen by 42.17% over the past year. This stark contrast emphasises the challenges faced by the company compared to the broader market’s modest gains of 7.65% over the same period.
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Financial Performance and Profitability Concerns
Goodricke Group’s financial metrics reveal significant headwinds. The company has experienced a negative compound annual growth rate (CAGR) of -204.87% in operating profits over the last five years, indicating a steep decline in core earnings. This deterioration is further reflected in the company’s weak ability to service its debt, with an average EBIT to interest ratio of -2.65, signalling that earnings before interest and tax are insufficient to cover interest expenses.
Profitability remains subdued, with an average return on equity (ROE) of just 2.64%, suggesting limited efficiency in generating profits from shareholders’ funds. The latest six-month results underscore this trend, with net sales declining by 23.82% to Rs.391.07 crores and profit after tax (PAT) contracting by 49.73% to Rs.36.58 crores. Additionally, the company has not declared any dividend per share (DPS) in the latest financial year, with the DPS standing at Rs.0.00, reflecting constrained cash flows and cautious capital allocation.
Valuation and Risk Profile
The stock’s valuation appears stretched relative to its historical averages, with the current price reflecting a riskier profile. Despite the negative returns of 42.17% over the past year, the company’s profits have paradoxically increased by 23.7% during the same period, indicating volatility in earnings quality or timing differences in recognition. This disparity contributes to the stock’s cautious market perception.
Goodricke Group has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, highlighting persistent challenges in maintaining competitive performance within the FMCG sector.
Shareholding and Market Position
The company’s majority shareholding remains with promoters, which can influence strategic decisions and capital structure. However, this has not translated into improved market confidence or share price stability in recent periods.
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Mojo Score and Analyst Ratings
Goodricke Group currently holds a Mojo Score of 12.0, categorised as a Strong Sell. This represents a downgrade from its previous Sell rating as of 3 Mar 2025, reflecting deteriorating fundamentals and market sentiment. The company’s market capitalisation grade stands at 4, indicating a relatively modest market size within its sector.
Sector and Industry Comparison
Operating within the FMCG sector, Goodricke Group’s performance contrasts with the broader industry trends, where many peers have maintained steadier growth trajectories. The stock’s decline to Rs.157.3 from its 52-week high of Rs.282 underscores the significant valuation compression it has undergone, nearly halving in value over the past year.
Summary of Key Metrics
To summarise, the stock’s key performance indicators include:
- 52-week low price: Rs.157.3
- 52-week high price: Rs.282
- One-year stock return: -42.17%
- Sensex one-year return: +7.65%
- Operating profit CAGR (5 years): -204.87%
- EBIT to interest ratio (avg): -2.65
- Return on equity (avg): 2.64%
- Latest six-month PAT: Rs.36.58 crores (-49.73%)
- Latest six-month net sales: Rs.391.07 crores (-23.82%)
- Dividend per share: Rs.0.00
These figures collectively illustrate the pressures on Goodricke Group’s financial health and market valuation, contributing to the stock’s recent decline to its 52-week low.
Broader Market Environment
The broader market backdrop has been mixed, with the Sensex trading below its 50-day moving average but maintaining a positive trend above its 200-day moving average. This suggests some resilience in the overall market despite short-term fluctuations. However, Goodricke Group’s share price trajectory has diverged sharply from these trends, reflecting company-specific factors rather than general market movements.
Conclusion
Goodricke Group Ltd’s fall to Rs.157.3 marks a significant milestone in its recent share price journey, underscored by weak financial metrics and subdued profitability. The stock’s performance relative to the Sensex and its sector peers highlights ongoing challenges in sustaining growth and investor confidence. While the broader market shows signs of resilience, Goodricke’s valuation and financial indicators remain under pressure as of 20 Jan 2026.
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