Stock Price Movement and Market Context
The stock’s new low of Rs.67 represents a notable drop from its 52-week high of Rs.111.45, reflecting a year-long downward trajectory. Despite outperforming its sector by 0.84% on the day of the decline, Grauer & Weil remains below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.
In contrast, the broader market benchmark, the Sensex, has experienced a decline of 522.35 points to close at 82,530.19, down 0.92% on the same day. The Sensex remains 4.4% below its 52-week high of 86,159.02, trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating some underlying market resilience.
Financial Performance and Valuation Metrics
Grauer & Weil’s financial results have contributed to the stock’s subdued performance. The company reported a 30.43% decline in Profit Before Tax (PBT) excluding other income for the quarter ended December 2025, amounting to Rs.32.06 crores. Correspondingly, Profit After Tax (PAT) fell by 25.0% to Rs.32.33 crores in the same period.
Return on Capital Employed (ROCE) for the half-year stood at a low 20.01%, while Return on Equity (ROE) was recorded at 15.1%. These profitability ratios, combined with a Price to Book Value (P/B) ratio of 3.1, suggest the stock is trading at a premium relative to its historical valuations and peer group averages, despite the recent earnings contraction.
Long-Term Growth and Shareholder Composition
Over the last five years, the company’s operating profit has grown at an annualised rate of 14.83%, which is modest within the commodity chemicals sector. The stock’s one-year total return has been negative at -20.79%, underperforming the Sensex’s positive 10.88% return over the same period. Profitability has also declined by 12.7% year-on-year, indicating pressure on the company’s earnings base.
Notably, domestic mutual funds hold a minimal stake of just 0.01% in Grauer & Weil, which may reflect limited institutional conviction given the company’s current valuation and performance metrics. The company maintains a low average debt-to-equity ratio of zero, indicating a conservative capital structure with limited leverage.
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Sector and Peer Comparison
Within the commodity chemicals sector, Grauer & Weil’s performance has lagged behind key benchmarks. The stock’s Mojo Score currently stands at 23.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 13 Oct 2025. This reflects a deteriorated outlook based on comprehensive financial and market data analysis.
The company’s market capitalisation grade is rated at 3, indicating a mid-tier size relative to its sector peers. Despite its scale, the stock’s returns have been below those of the BSE500 index over the last three years, one year, and three months, underscoring a consistent underperformance trend.
Recent Trading Trends and Technical Indicators
After two consecutive days of decline, the stock showed a slight gain today, though it remains entrenched near its 52-week low. The persistent trading below all key moving averages suggests that the stock is in a prolonged downtrend, with limited short-term technical support.
The day’s price change was a marginal decline of 0.21%, yet this small movement belies the broader negative trend that has seen the stock lose over one-fifth of its value in the past year.
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Summary of Key Financial and Market Indicators
Grauer & Weil’s recent financial disclosures and market performance highlight several areas of concern. The company’s declining profitability, as evidenced by a 25.0% drop in PAT and a 30.43% fall in PBT excluding other income, has weighed on investor sentiment. The ROCE of 20.01% and ROE of 15.1% indicate moderate returns on capital and equity, but these are not sufficient to offset the valuation premium implied by the 3.1 P/B ratio.
The stock’s underperformance relative to the Sensex and BSE500 indices, combined with its low institutional ownership, suggests limited market confidence. Despite a conservative debt profile, the company’s growth rate and earnings trajectory have not met expectations over the past year.
Technically, the stock remains in a downtrend, trading below all major moving averages and having recently hit a new 52-week low of Rs.67. While there was a minor recovery after two days of decline, the overall trend remains subdued.
Market Environment and Broader Implications
The broader market environment has also been challenging, with the Sensex experiencing a negative opening and closing down by 0.92%. However, the index remains relatively close to its 52-week high, suggesting that the weakness in Grauer & Weil is more company-specific than market-driven.
Within the commodity chemicals sector, Grauer & Weil’s performance contrasts with some peers that have maintained stronger earnings growth and more favourable valuations. The company’s current Mojo Grade of Strong Sell reflects these comparative weaknesses.
Conclusion
Grauer & Weil (India) Ltd’s fall to a 52-week low of Rs.67 underscores a period of subdued financial results and market underperformance. The stock’s valuation premium, despite declining profits and returns, alongside limited institutional interest, highlights ongoing challenges. Trading below all key moving averages and underperforming major indices, the stock remains in a cautious position within the commodity chemicals sector.
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