Jyoti Resins and Adhesives Ltd Falls to 52-Week Low of Rs.850

Stock Price Movement and Market Context

On 16 Feb 2026, Jyoti Resins and Adhesives Ltd's stock touched an intraday low of Rs.850, representing a 3.17% drop for the day. This new 52-week low reflects a continuation of the stock's downward trajectory, which has seen it fall by 30.93% over the past year. Despite this, the stock managed to outperform its sector by 0.33% on the day and showed signs of a trend reversal after four consecutive days of decline.

The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained bearish momentum. In contrast, the broader market benchmark, the Sensex, opened lower at 82,480.40 points with a minor loss of 0.18% and is trading just 4.3% below its 52-week high of 86,159.02. The Sensex itself is positioned below its 50-day moving average, although the 50DMA remains above the 200DMA, suggesting mixed signals for the overall market.

Financial Performance and Valuation Metrics

Jyoti Resins and Adhesives Ltd reported negative quarterly results for December 2025, which have contributed to the stock's weak performance. The company’s Profit After Tax (PAT) for the quarter stood at Rs.15.37 crores, reflecting a decline of 16.2% compared to the previous four-quarter average. Operating profit before depreciation, interest, and taxes (PBDIT) also hit a low of Rs.18.87 crores during the same period.

The operating profit to net sales ratio dropped to 26.10%, marking the lowest level recorded in recent quarters. Despite these setbacks, the company maintains a robust Return on Equity (ROE) of 27.5%, which is relatively high. However, this is accompanied by an expensive valuation, with a Price to Book Value ratio of 4.2, suggesting that the stock is priced at a premium relative to its book value.

Compared to its peers, Jyoti Resins trades at a discount to their average historical valuations, which may reflect market caution given the recent financial results and price performance. Over the past year, profits have declined by 4.4%, further underscoring the challenges faced by the company.

Market Position and Shareholding

Jyoti Resins and Adhesives Ltd operates within the Specialty Chemicals industry, a sector characterised by specialised product offerings and competitive pressures. The company’s market capitalisation grade is rated at 4, reflecting its mid-sized presence in the market.

Notably, domestic mutual funds hold no stake in Jyoti Resins, which is unusual 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.

Over the last three years, the stock has consistently underperformed the BSE500 benchmark, with annual returns lagging behind the broader market. The 30.93% negative return over the past year contrasts sharply with the Sensex’s positive 8.78% gain during the same period.

Balance Sheet and Growth Trends

Jyoti Resins maintains a low average debt-to-equity ratio of zero, signalling a conservative capital structure with minimal reliance on debt financing. This financial prudence may provide some stability amid market fluctuations.

On a positive note, the company has demonstrated healthy long-term growth in operating profit, with an annualised growth rate of 57.36%. This suggests that despite recent setbacks, the underlying business has expanded its earnings capacity over time.

Summary of Key Metrics and Ratings

The company’s Mojo Score stands at 23.0, with a Mojo Grade of Strong Sell as of 13 Aug 2025, an upgrade from the previous Sell rating. This reflects a cautious outlook based on the company’s recent financial performance and market behaviour.

Jyoti Resins’ 52-week high was Rs.1,570, indicating a substantial decline of 45.9% from that peak to the current 52-week low of Rs.850. The stock’s day change on 16 Feb 2026 was a marginal decline of 0.27%, showing some stability after recent volatility.

While the company’s valuation appears expensive on a Price to Book basis, the discount relative to peer historical averages and the low leverage provide a nuanced picture of its financial standing.

Conclusion

Jyoti Resins and Adhesives Ltd’s fall to a 52-week low of Rs.850 highlights the challenges faced by the company in recent quarters, including declining profits and subdued market sentiment. The stock’s underperformance relative to the Sensex and its peers, combined with a lack of institutional ownership, underscores the cautious environment surrounding the company. Nevertheless, its strong ROE, low debt levels, and long-term operating profit growth remain notable features within its financial profile.

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