Hemang Resources Falls to 52-Week Low of Rs.15 Amidst Continued Downtrend

Recent Price Movement and Volatility

On 26 December 2025, Hemang Resources opened with a gap down of 5.65%, setting the tone for a challenging trading session. The stock experienced high intraday volatility, with a 5% range calculated from the weighted average price. During the day, it touched an intraday low of Rs.15, representing a 12.69% drop from previous levels. Over the last two trading days, the stock has recorded a cumulative return of -11.06%, underperforming its sector by 7.3% on the day.

Hemang Resources is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained downward pressure and a lack of short- to long-term upward momentum.

Market Context and Sector Comparison

While Hemang Resources has been facing headwinds, the broader market environment presents a mixed picture. The Sensex opened lower by 183.42 points and is trading at 85,209.19, down 0.23% for the day. Despite this, the Sensex remains close to its 52-week high of 86,159.02, just 1.11% away. The index is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average, signalling a generally positive trend for the benchmark.

Mid-cap stocks have shown resilience, with the BSE Mid Cap index gaining 0.18% today. In contrast, Hemang Resources’ performance diverges sharply from these broader market trends, highlighting company-specific factors influencing its share price.

Long-Term Performance and Financial Metrics

Over the past year, Hemang Resources has recorded a return of -47.77%, contrasting with the Sensex’s positive return of 8.60% during the same period. The stock’s 52-week high was Rs.33, underscoring the extent of the decline to the current low of Rs.15.

Financially, the company has reported operating losses, which contribute to a weak long-term fundamental profile. The debt servicing capacity is limited, with a Debt to EBITDA ratio of -1.00 times, indicating challenges in managing financial obligations relative to earnings before interest, taxes, depreciation, and amortisation.

Profit after tax (PAT) for the nine months ended September 2025 stood at Rs.1.09 crore, reflecting a contraction of 90.79% compared to the previous period. Additionally, the Debtors Turnover Ratio for the half year is at a low 0.33 times, signalling slower collection cycles and potential liquidity concerns.

Risk Factors and Valuation Considerations

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) have been negative, which adds to the risk profile of the stock. Compared to its historical average valuations, the current trading levels suggest elevated risk. Over the last year, profits have declined by 87.2%, further emphasising the financial strain.

Hemang Resources has consistently underperformed the BSE500 benchmark over the past three years, with annual returns below the broader market indices. This persistent underperformance is reflected in the stock’s current valuation and price trajectory.

Shareholding and Corporate Structure

The majority shareholding in Hemang Resources is held by promoters, indicating concentrated ownership. This structure can influence corporate governance and strategic decisions, which may be relevant to the company’s ongoing performance and market perception.

Summary of Key Price and Performance Indicators

To summarise, Hemang Resources has reached a new 52-week low of Rs.15, with the stock trading below all major moving averages and exhibiting high intraday volatility. The stock’s year-to-date and one-year returns have lagged significantly behind the benchmark indices, reflecting a challenging environment for the company.

Financial indicators such as operating losses, negative EBITDA, low debt servicing ability, and declining profitability contribute to the current market assessment. The stock’s performance contrasts with broader market trends, where mid-cap indices and the Sensex have shown relative strength.

Investors and market participants will continue to monitor Hemang Resources’ price movements and financial disclosures as the company navigates this period of subdued performance.

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