Stock Price Movement and Market Context
On 13 Feb 2026, Hemang Resources Ltd’s stock price fell sharply by 9.87% in a single trading session, closing at Rs.13.5, the lowest level recorded in the past year. This decline outpaced the sector’s underperformance, with the Trading & Distributors sector falling by 4.18% on the same day. The stock’s price is now substantially below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward trend.
In contrast, the broader market benchmark, the Sensex, opened lower at 82,902.73 points, down 0.92% from the previous close, and was trading at 82,963.65 points (-0.85%) during the session. Despite this, the Sensex remains relatively strong, standing just 3.85% below its 52-week high of 86,159.02 points. The index’s 50-day moving average remains above its 200-day moving average, indicating a generally positive medium-term market trend, which Hemang Resources has not mirrored.
Performance Over the Past Year
Hemang Resources Ltd has experienced a challenging year, with its share price declining by 41.47% over the last 12 months. This contrasts sharply with the Sensex’s positive return of 8.97% during the same period. The stock’s 52-week high was Rs.28.8, highlighting the extent of the recent price erosion. The company’s performance has consistently lagged behind the BSE500 index for the past three years, reflecting ongoing difficulties in maintaining competitive returns.
Financial and Operational Indicators
The company’s financial metrics reveal several areas of concern. Hemang Resources reported flat results for the quarter ended December 2025, with no significant improvement in revenue or profitability. The debtors turnover ratio for the half-year stood at a low 0.33 times, indicating slower collection cycles and potential liquidity constraints.
Moreover, the company is currently operating with negative EBITDA, which has contributed to a weak ability to service its debt obligations. The debt to EBITDA ratio is reported at -1.00 times, underscoring the financial strain. These factors have contributed to a downgrade in the company’s Mojo Grade from Sell to Strong Sell as of 26 Feb 2024, with a current Mojo Score of 12.0. The Market Cap Grade remains low at 4, reflecting limited market capitalisation strength.
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Trading Patterns and Liquidity
Trading activity in Hemang Resources has been erratic over the past month, with the stock not trading on one day out of the last 20 trading sessions. This irregularity may reflect lower liquidity or reduced investor engagement. The stock’s consistent trading below all major moving averages further emphasises the prevailing bearish sentiment.
Long-Term Fundamental Strength and Risk Profile
The company’s long-term fundamental strength is considered weak, primarily due to its ongoing losses and inability to generate positive earnings before interest, taxes, depreciation, and amortisation. The negative EBITDA and high debt servicing risk have contributed to the stock’s classification as risky relative to its historical valuation averages. Over the past year, profits have declined by 87.2%, compounding concerns about the company’s financial health.
Promoters remain the majority shareholders, maintaining control over the company’s strategic direction. However, this has not translated into improved financial or market performance in recent years.
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Summary of Key Metrics
To summarise, Hemang Resources Ltd’s current stock price of Rs.13.5 represents a 52-week low, down 53.1% from its high of Rs.28.8. The stock’s one-year return of -41.47% contrasts with the Sensex’s positive 8.97% gain. The company’s Mojo Grade of Strong Sell and a low Market Cap Grade of 4 reflect ongoing concerns about its financial stability and market position. Negative EBITDA, a debt to EBITDA ratio of -1.00 times, and a low debtors turnover ratio of 0.33 times further highlight the challenges faced by the company.
While the broader market shows signs of resilience, Hemang Resources continues to underperform, with its share price reflecting the cumulative impact of these factors.
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