Grauer & Weil (India) Ltd Stock Hits 52-Week Low Amidst Continued Downtrend

Stock Price Movement and Market Context

The stock recorded an intraday low of Rs.62.16, down 4.16% on the day, underperforming its sector by 1.93%. This decline contributed to a day change of -2.91% for the stock. Grauer & Weil is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

On the broader market front, the Sensex opened flat but fell by 458.19 points, or 0.59%, closing at 81,762.29. While some indices such as the S&P BSE Oil & Gas hit new 52-week highs, Grauer & Weil’s performance contrasts sharply with these gains, reflecting sector-specific and company-level challenges.

Long-Term Performance and Valuation Metrics

Over the past year, Grauer & Weil’s stock has declined by 27.45%, significantly lagging behind the Sensex’s positive return of 9.58%. The stock’s 52-week high was Rs.111.45, highlighting the extent of the recent price erosion. This underperformance extends beyond the last year, with the stock also trailing the BSE500 index over the last three years, one year, and three months.

Despite the decline, the company maintains a low average debt-to-equity ratio of zero, indicating a conservative capital structure. Its return on equity (ROE) stands at 15.1%, suggesting a fair valuation with a price-to-book value ratio of 3. However, this premium valuation contrasts with the stock’s recent price weakness and profit declines.

Financial Results and Profitability Trends

The company’s recent quarterly results reveal a decline in profitability. Profit before tax (PBT) excluding other income fell by 30.43% to Rs.32.06 crores, while profit after tax (PAT) decreased by 25.0% to Rs.32.33 crores. These figures reflect a contraction in earnings that has contributed to the stock’s downward trajectory.

Return on capital employed (ROCE) for the half-year period is at a low 20.01%, underscoring challenges in generating efficient returns on invested capital. Additionally, profits over the past year have declined by 12.7%, further indicating subdued operational performance despite the company’s sizeable market presence.

Market Participation and Institutional Holdings

Domestic mutual funds hold a minimal stake of just 0.01% in Grauer & Weil, which is notable given their capacity for detailed company research. This limited exposure may reflect a cautious stance towards the stock’s valuation and recent performance trends.

The company’s Mojo Score stands at 26.0, with a Mojo Grade of Strong Sell, upgraded from a previous Sell rating on 13 Oct 2025. The market cap grade is 3, indicating a mid-tier market capitalisation relative to peers.

Sector and Peer Comparison

Within the Commodity Chemicals sector, Grauer & Weil’s stock is trading at a premium compared to the average historical valuations of its peers. This premium is juxtaposed against its recent negative returns and declining profitability, which may be contributing factors to the stock’s current price weakness.

The stock’s underperformance relative to the sector and broader market indices highlights the challenges faced by the company in maintaining investor confidence and market valuation.

Summary of Key Metrics

To summarise, Grauer & Weil (India) Ltd’s stock has reached a 52-week low of Rs.62.16, reflecting a 27.45% decline over the past year. The company’s profitability has contracted, with PBT and PAT falling by over 25% in the latest quarter. Despite a conservative debt profile and a fair ROE of 15.1%, the stock trades below all major moving averages and carries a Strong Sell Mojo Grade of 26.0.

Market participation by domestic mutual funds remains minimal, and the stock’s premium valuation relative to peers contrasts with its recent financial performance. These factors collectively contribute to the stock’s subdued market standing and recent price decline.

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