Stock Price Movement and Market Context
On 19 Jan 2026, Gujarat Alkalies & Chemicals Ltd’s share price touched an intraday low of Rs.466, representing a 2.12% decline on the day and a 1.82% drop compared to the previous close. This marks the lowest price level for the stock in the past year, down substantially from its 52-week high of Rs.750. The stock has experienced a consecutive four-day decline, resulting in a cumulative loss of 2.85% over this period. It has also underperformed its sector by 0.8% on the day.
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 later declined by 0.27% to 83,348.11 points, remaining 3.37% below its own 52-week high of 86,159.02. The Sensex itself has been on a three-week losing streak, down 2.81% in that timeframe.
Financial Performance and Valuation Metrics
Over the last year, Gujarat Alkalies & Chemicals Ltd has delivered a negative return of 36.84%, markedly underperforming the Sensex, which gained 8.78% during the same period. The company’s long-term growth trajectory has been subdued, with operating profit declining at an annualised rate of 65.17% over the past five years. Despite this, the company’s profits have shown a notable increase of 100.1% over the last year, a divergence that has contributed to a high Price/Earnings to Growth (PEG) ratio of 232.9, indicating an expensive valuation relative to earnings growth.
The stock’s Price to Book Value stands at 0.6, which is a premium compared to the average historical valuations of its peers in the commodity chemicals sector. Return on Equity (ROE) remains at zero, reflecting limited profitability relative to shareholder equity. The company’s debt-equity ratio is low, with a half-year figure of 0.11 times and an average of 0.04 times, indicating a conservative capital structure with minimal leverage.
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Recent Quarterly and Nine-Month Results
The company’s recent financial results have been largely flat. Interest expenses for the nine-month period stood at Rs.47.63 crores, reflecting a growth of 47.23%. Profit Before Tax excluding other income for the latest quarter was negative Rs.45.75 crores, a decline of 40.5% compared to the average of the previous four quarters. These figures highlight ongoing pressures on profitability despite the company’s low leverage.
Dividend yield remains relatively high at 3.32% based on the current price, which may be of interest to income-focused investors. However, the stock’s overall performance and valuation metrics have contributed to a downgrade in its Mojo Grade from Strong Sell to Sell as of 5 Aug 2025, with a current Mojo Score of 31.0. The Market Cap Grade is rated at 3, reflecting its mid-tier market capitalisation status within the commodity chemicals sector.
Comparative Performance and Shareholding
Gujarat Alkalies & Chemicals Ltd has consistently underperformed the BSE500 benchmark over the past three years, with negative returns in each annual period. This trend underscores the challenges the company faces in delivering shareholder value relative to the broader market and its sector peers.
The majority of the company’s shares are held by non-institutional investors, which may influence trading patterns and liquidity. The company operates within the commodity chemicals industry, a sector that has experienced mixed performance amid fluctuating raw material costs and demand cycles.
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Summary of Key Metrics
To summarise, Gujarat Alkalies & Chemicals Ltd’s stock has reached a 52-week low of Rs.466 amid a backdrop of subdued long-term growth, flat recent results, and valuation concerns. The company’s low debt levels and dividend yield of 3.32% provide some stability, but the stock’s underperformance relative to the Sensex and its peers remains a notable feature. The downgrade in its Mojo Grade to Sell reflects these factors, alongside a modest Market Cap Grade of 3.
Investors monitoring the commodity chemicals sector will note the stock’s persistent challenges in generating consistent returns and the divergence between profit growth and share price performance over the past year.
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