Stock Price Movement and Market Context
The stock recorded an intraday low of Rs.827.7, down by 2.93% on the day, with an overall day change of -2.77%. This decline extends a three-day losing streak, during which the stock has fallen by 5.82%. Jyoti Resins is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
In comparison, the broader Sensex index experienced a volatile session, opening 235.57 points higher but reversing sharply to close down by 932.25 points at 83,037.57, a decline of 0.83%. The Sensex remains 3.76% below its 52-week high of 86,159.02 and is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, signalling mixed market signals.
Performance Relative to Benchmark and Sector
Over the past year, Jyoti Resins and Adhesives Ltd has underperformed significantly, delivering a negative return of 34.20%, while the Sensex has gained 9.35% over the same period. The stock has also underperformed the BSE500 index consistently over the last three annual periods, reflecting ongoing challenges in maintaining competitive performance within its sector.
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Financial Metrics and Profitability Trends
The company reported negative quarterly results for December 2025, with a Profit After Tax (PAT) of Rs.15.37 crores, representing a decline of 16.2% compared to the previous four-quarter average. The PBDIT for the quarter was Rs.18.87 crores, the lowest recorded in recent periods. Operating profit to net sales ratio also dropped to a low of 26.10%, signalling pressure on margins.
Despite these setbacks, Jyoti Resins maintains a strong Return on Equity (ROE) of 27.5%, though this is accompanied by a relatively high Price to Book (P/B) ratio of 4. The valuation is considered expensive relative to its own historical averages but trades at a discount compared to peer group valuations. Over the past year, profits have decreased by 4.4%, further reflecting the subdued earnings environment.
Shareholding and Market Perception
Domestic mutual funds currently hold no stake in Jyoti Resins and Adhesives Ltd. Given their capacity for detailed research and due diligence, this absence of institutional ownership may indicate a cautious stance towards the company’s current valuation or business outlook.
The company’s market cap grade stands at 4, and its Mojo Score is 23.0, with a recent downgrade from a 'Sell' to a 'Strong Sell' rating on 13 August 2025. This reflects a deteriorated outlook based on the latest financial and market data.
Debt Profile and Growth Metrics
Jyoti Resins benefits from a low debt-to-equity ratio, averaging zero, which suggests a conservative capital structure with minimal leverage. This financial prudence is a positive aspect amid the current challenges.
Long-term growth in operating profit has been robust, with an annualised growth rate of 57.36%. This indicates that despite recent setbacks, the company has demonstrated the ability to expand its core earnings over a longer horizon.
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Summary of Key Concerns
The stock’s fall to Rs.827.7 marks a significant technical low, reflecting a combination of subdued quarterly earnings, declining profitability ratios, and a valuation that remains high relative to its own historical standards. The absence of domestic mutual fund participation and the downgrade to a 'Strong Sell' rating further underscore the cautious sentiment surrounding the stock.
While the company’s low leverage and strong long-term operating profit growth provide some stabilising factors, the recent financial performance and market dynamics have weighed heavily on the stock price, resulting in its current 52-week low.
Market Outlook and Broader Implications
Jyoti Resins and Adhesives Ltd’s performance contrasts with the broader market, where the Sensex remains near its 52-week high despite recent volatility. The stock’s underperformance relative to the benchmark indices and sector peers highlights the challenges faced within its niche in the Specialty Chemicals industry.
Investors and market participants will continue to monitor the company’s financial disclosures and market movements closely, given the stock’s recent trend and valuation metrics.
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