Key Events This Week
Feb 09: Stock opens at Rs.338.10, down 1.17% amid Sensex gains
Feb 10: Q3 FY26 profit surge announced; rating upgraded to Hold
Feb 12: Valuation metrics improve, signalling renewed price attractiveness
Feb 13: Week closes at Rs.350.60, up 2.48% for the week
Monday, 09 February 2026: Weak Start Despite Sensex Rally
India Gelatine & Chemicals Ltd opened the week at Rs.338.10, down 1.17% from the previous close, contrasting with the Sensex’s robust 1.04% gain to 37,113.23. The stock’s decline on a day of broad market strength suggested some initial investor caution, possibly awaiting clarity on upcoming quarterly results. Trading volume was relatively low at 1,137 shares, indicating subdued participation.
Tuesday, 10 February 2026: Profit Surge and Rating Upgrade Drive Sharp Rally
The stock rebounded sharply on 10 February, surging 6.95% to close at Rs.361.60 on a volume of 2,732 shares. This rally coincided with the release of Q3 FY26 results, which revealed a significant profit surge despite some revenue concerns. The company’s operating cash flow reached ₹21.01 crores annually, and profit after tax for the last six months rose 66.3%, underscoring strong earnings momentum.
Simultaneously, MarketsMOJO upgraded India Gelatine’s investment rating from Sell to Hold, citing improved technical indicators and financial performance. The upgrade reflected a shift from bearish to mildly bearish technical trends, with weekly MACD and Bollinger Bands signalling reduced downward pressure. This positive news flow catalysed the stock’s highest close of the week.
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Wednesday, 11 February 2026: Minor Correction on High Volume
Following the strong rally, the stock experienced a slight pullback, closing at Rs.359.30, down 0.64%. This minor correction occurred on a significantly higher volume of 11,841 shares, suggesting profit-taking by short-term traders. The Sensex continued its modest upward trend, gaining 0.13% to 37,256.72, indicating that the stock’s slight retreat was stock-specific rather than market-driven.
Thursday, 12 February 2026: Valuation Improvements Highlight Renewed Attractiveness
On 12 February, India Gelatine & Chemicals Ltd closed at Rs.357.75, down 0.43%, as the Sensex declined 0.56%. The day’s focus was on the company’s improved valuation metrics, which prompted a reclassification of its market rating from Sell to Hold. The stock’s P/E ratio stood at a compelling 9.59, well below many specialty chemicals peers, while the price-to-book ratio was a modest 1.39.
Enterprise value multiples also indicated relative undervaluation, with EV to EBIT at 7.02 and EV to EBITDA at 5.97, contrasting sharply with peers trading at multiples above 30. These valuation shifts, combined with strong returns on capital employed (19.40%) and equity (14.49%), signalled renewed price attractiveness despite recent volatility.
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Friday, 13 February 2026: Week Ends with a Slight Decline Amid Broader Market Weakness
The stock closed the week at Rs.350.60, down 2.00% on the day, as the Sensex fell 1.40% to 36,532.48. Despite the day’s decline, India Gelatine ended the week with a positive 2.48% gain, outperforming the Sensex’s 0.54% loss. Trading volume was moderate at 1,202 shares, reflecting a cautious market environment. The week’s price action highlighted the stock’s resilience amid mixed technical signals and evolving valuation dynamics.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.338.10 | -1.17% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.361.60 | +6.95% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.359.30 | -0.64% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.357.75 | -0.43% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.350.60 | -2.00% | 36,532.48 | -1.40% |
Key Takeaways
India Gelatine & Chemicals Ltd demonstrated relative strength this week, outperforming the Sensex by nearly 3 percentage points. The sharp rally on 10 February was driven by a robust profit surge and a rating upgrade to Hold, reflecting improved technical and financial fundamentals. The company’s strong cash flow generation, zero debt, and solid return on equity underpin this positive momentum.
Valuation metrics improved markedly, with the stock trading at attractive P/E and EV multiples relative to peers, signalling renewed price appeal. However, the stock experienced some profit-taking midweek and ended the week with a slight decline amid broader market weakness, highlighting ongoing volatility and mixed technical signals.
Investors should note the cautious upgrade and the premium valuation relative to some peers, suggesting a balanced risk-reward profile. The company’s long-term performance remains strong, but short-term price movements warrant close monitoring.
Conclusion
The week’s developments for India Gelatine & Chemicals Ltd reflect a cautious but constructive phase. The combination of a profit surge, improved technical outlook, and enhanced valuation metrics contributed to the stock’s outperformance against the Sensex. While the upgrade to Hold signals growing confidence, the mixed technical indicators and recent price volatility counsel prudence. Overall, the stock appears to be stabilising with potential for gradual recovery, supported by solid financials and attractive valuation relative to its specialty chemicals peers.
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