Hemang Resources Ltd Stock Falls to 52-Week Low of Rs.13.65

Stock Price Movement and Volatility

On the trading day, Hemang Resources Ltd experienced a notable intraday low of Rs.13.65, representing a decline of 12.67% from the previous close. The stock’s day change registered a steep fall of 10.17%, underperforming its Trading & Distributors sector by 9.43%. This decline extends a losing streak spanning four consecutive sessions, during which the stock has shed 16.68% in value. The share price has also remained below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

Intraday volatility was elevated at 6.76%, calculated from the weighted average price, indicating heightened trading activity and uncertainty among market participants. This volatility contrasts with the broader market environment, where the Sensex opened lower by 158.87 points and closed down 278.79 points at 83,743.30, a decline of 0.52%. Despite this, the Sensex remains relatively close to its 52-week high of 86,159.02, just 2.88% away, and trades below its 50-day moving average, which itself is positioned above the 200-day moving average.

Financial Performance and Fundamental Concerns

Hemang Resources Ltd’s financial metrics continue to reflect challenges. The company reported flat results for the nine months ended September 2025, with a profit after tax (PAT) of Rs.1.09 crore, representing a sharp contraction of 90.79% compared to prior periods. Earnings before interest, taxes, depreciation and amortisation (EBITDA) remain negative, contributing to a weak long-term fundamental strength assessment.

The company’s debt servicing capacity is constrained, as evidenced by a high debt-to-EBITDA ratio of -1.00 times. This ratio indicates that the company’s earnings are insufficient to cover its debt obligations, raising concerns about financial stability. Additionally, the debtors turnover ratio for the half-year period stands at a low 0.33 times, signalling inefficiencies in receivables management and potential liquidity pressures.

Over the past year, Hemang Resources Ltd’s stock has delivered a total return of -54.55%, markedly underperforming the Sensex, which posted a positive return of 7.92% over the same period. Profitability has deteriorated significantly, with net profits declining by 87.2% year-on-year. This consistent underperformance extends over the last three years, with the stock lagging behind the BSE500 index in each annual period.

Market Position and Shareholding

Hemang Resources Ltd operates within the Trading & Distributors sector, a segment that has seen mixed performance amid broader market fluctuations. The company’s market capitalisation grade is rated at 4, reflecting its relatively modest size and market presence. The Mojo Score assigned to the stock is 12.0, with a Mojo Grade of Strong Sell as of 26 Feb 2024, an upgrade from the previous Sell rating. This grading underscores the cautious stance on the stock based on its financial and market indicators.

Promoters remain the majority shareholders, maintaining control over the company’s strategic direction. However, the stock’s valuation metrics suggest it is trading at a riskier level compared to its historical averages, with investors pricing in the company’s subdued earnings and financial constraints.

Comparative Performance and Sector Context

While Hemang Resources Ltd has faced a pronounced decline, the broader Trading & Distributors sector has experienced less severe setbacks. The stock’s underperformance relative to its sector peers by 9.43% on the day highlights its vulnerability amid sectoral pressures. The Sensex’s moderate decline of 0.52% on the same day further emphasises the stock’s relative weakness.

The 52-week high for Hemang Resources Ltd was Rs.31.40, indicating that the current price level of Rs.13.65 represents a depreciation of more than 56% from its peak. This wide gap reflects the significant market revaluation of the company over the past year, driven by deteriorating earnings and financial ratios.

Summary of Key Metrics

To summarise, Hemang Resources Ltd’s stock has reached a new 52-week low of Rs.13.65, reflecting a sustained decline over recent months. The company’s financial indicators reveal a contraction in profitability, negative EBITDA, and a challenging debt servicing profile. The stock’s performance over the past year has been markedly weaker than the benchmark Sensex and its sector peers, with a total return loss exceeding 54%.

The stock’s current trading below all major moving averages and its elevated volatility further illustrate the prevailing market sentiment. While the Sensex remains relatively resilient, Hemang Resources Ltd’s share price continues to reflect the impact of its financial and operational difficulties.

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