Stock Performance and Market Context
On 10 Feb 2026, Jyoti Resins and Adhesives Ltd reached an intraday low of Rs.956.2, representing a 9.22% drop from previous levels. This price is notably below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. In contrast, the broader market showed resilience, with the Sensex opening 144.25 points higher and trading at 84,388.41, up 0.38%. The Sensex is currently just 2.1% shy of its 52-week high of 86,159.02 and has recorded a 3.5% gain over the past three weeks, led by mega-cap stocks.
Jyoti Resins and Adhesives Ltd’s one-year performance starkly contrasts with the benchmark, having declined by 24.16%, while the Sensex gained 9.15% over the same period. The stock’s 52-week high was Rs.1,570, underscoring the extent of the recent correction.
Financial Metrics and Valuation Concerns
The company’s latest quarterly results for December 2025 reveal a decline in profitability. Profit After Tax (PAT) stood at Rs.15.37 crores, down 16.2% compared to the previous quarter’s average. Operating profit before depreciation, interest, and taxes (PBDIT) was at a low of Rs.18.87 crores, with the operating profit to net sales ratio falling to 26.10%, the lowest recorded in recent quarters.
Despite a robust Return on Equity (ROE) of 29%, the stock’s valuation appears stretched, trading at a Price to Book Value of 5. This is considered expensive relative to its peers, although the stock currently trades at a discount compared to historical averages within its sector. The company’s Price/Earnings to Growth (PEG) ratio stands at 3.9, indicating that earnings growth has not kept pace with valuation multiples.
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Shareholding and Market Sentiment
Domestic mutual funds hold no stake in Jyoti Resins and Adhesives Ltd, a notable point given their capacity for detailed research and due diligence. This absence of institutional interest may reflect caution regarding the company’s current price levels or business outlook. The stock’s Mojo Score is 21.0, with a Mojo Grade of Strong Sell, downgraded from Sell on 13 Aug 2025, indicating a deteriorated outlook from a market analytics perspective.
Long-Term Growth and Debt Profile
On a positive note, the company has demonstrated healthy long-term growth trends. Net sales have increased at an annualised rate of 33.32%, while operating profit has expanded even more rapidly at 57.26% per annum. Additionally, the company maintains a low average debt-to-equity ratio of zero, suggesting a conservative capital structure with minimal leverage.
However, these growth figures have not translated into share price appreciation, as the stock has consistently underperformed the BSE500 index over the past three years. This persistent underperformance, combined with recent quarterly profit declines, has contributed to the current valuation pressures.
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Summary of Key Indicators
Jyoti Resins and Adhesives Ltd’s current market capitalisation grade is 4, reflecting its mid-cap status within the Specialty Chemicals sector. The stock’s recent price action, including the 52-week low of Rs.956.2, is a clear indication of the challenges faced by the company in maintaining investor confidence amid a positive broader market environment.
The stock’s underperformance relative to the Sensex and sector peers, combined with declining quarterly profitability and a high valuation multiple, have contributed to its current standing. While the company’s long-term sales and operating profit growth rates remain robust, these have yet to be reflected in the share price or institutional investor interest.
Market Environment and Sector Performance
The Specialty Chemicals sector, in which Jyoti Resins and Adhesives Ltd operates, has seen mixed performance. While the broader market indices such as the Sensex have shown strength, led by mega-cap stocks, mid and small-cap stocks like Jyoti Resins have faced headwinds. The stock’s 4.22% decline today and its 9.22% intraday drop highlight the divergence between the company’s share price trajectory and the overall market momentum.
Investors monitoring the sector will note that Jyoti Resins and Adhesives Ltd’s current trading below all major moving averages signals a cautious stance by the market. The stock’s relative weakness compared to sector peers and the benchmark index underscores the challenges it faces in regaining upward momentum.
Conclusion
Jyoti Resins and Adhesives Ltd’s fall to a 52-week low of Rs.956.2 marks a significant milestone in its recent share price journey. The decline reflects a combination of subdued quarterly earnings, stretched valuation metrics, and a lack of institutional participation. Despite strong long-term growth in sales and operating profit, the stock has underperformed the broader market and its sector peers over the past year and beyond.
As the stock trades below all key moving averages and continues to lag the Sensex’s positive trajectory, it remains under close observation for any shifts in financial performance or market sentiment that could influence its valuation going forward.
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