Hemang Resources Falls to 52-Week Low of Rs.19.2 Amidst Continued Downtrend

Recent Price Movement and Market Context

On 24 Nov 2025, Hemang Resources recorded its lowest price in the past year at Rs.19.2, following a five-day consecutive decline that resulted in a cumulative return of -8.72% over this period. The stock’s performance today lagged behind its sector by 1.21%, signalling relative weakness within the Trading & Distributors industry segment. This movement contrasts with the broader market, where the Sensex opened 88.12 points higher and was trading at 85,369.96, up 0.16% on the day. The Sensex itself is nearing its 52-week high of 85,801.70, supported by a three-week consecutive rise and a 2.59% gain over that timeframe.

Hemang Resources is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates a persistent bearish trend, with the stock unable to find support at these commonly watched levels.

Comparative Performance Over One Year

Over the last 12 months, Hemang Resources has recorded a return of -27.14%, a stark contrast to the Sensex’s positive return of 7.93% during the same period. The stock’s 52-week high was Rs.34.57, highlighting the extent of the decline from its peak. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the previous three annual periods.

Financial and Operational Indicators

Hemang Resources’ financial data reveals several areas of concern. The company reported a flat profit after tax (PAT) of Rs.1.09 crore for the nine months ending September 2025, reflecting a contraction of 90.79% compared to prior periods. This subdued profitability is accompanied by a negative EBITDA, which signals challenges in generating earnings from core operations.

The company’s debt servicing capacity is limited, with a Debt to EBITDA ratio of -1.00 times, indicating that earnings before interest, tax, depreciation, and amortisation are insufficient to cover debt obligations. Additionally, the Debtors Turnover Ratio for the half-year stands at 0.33 times, one of the lowest in recent periods, suggesting slower collection of receivables and potential liquidity constraints.

Sector and Shareholding Structure

Operating within the Trading & Distributors sector, Hemang Resources faces competitive pressures and market dynamics that have influenced its recent performance. The majority shareholding remains with the promoters, maintaining control over the company’s strategic direction.

Broader Market Environment

While Hemang Resources has experienced a decline, the broader market environment has shown resilience. The Sensex is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, a configuration often interpreted as bullish. Mid-cap stocks are leading gains, with the BSE Mid Cap index up by 0.21% on the day, underscoring a divergence between Hemang Resources and the wider market trends.

Summary of Key Challenges

The stock’s recent fall to Rs.19.2 reflects a combination of factors including subdued earnings growth, negative EBITDA, limited debt servicing ability, and weak receivables turnover. These elements have contributed to the stock’s underperformance relative to its sector and benchmark indices. The persistent trading below all major moving averages further illustrates the current market sentiment surrounding Hemang Resources.

Conclusion

Hemang Resources’ new 52-week low marks a notable point in its recent trading history, highlighting ongoing pressures within the company’s financial profile and market positioning. The stock’s performance contrasts with broader market gains and sector movements, underscoring the challenges faced by the company in the current environment.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →