Intraday Price Movement and Volatility
On 8 December 2025, Kanoria Chemicals & Industries opened with a gap down of 3.86%, signalling immediate selling pressure. Despite an intraday high of Rs.80.95, representing an 8.83% rise from the opening price, the stock ultimately declined to an intraday low of Rs.70.06, down 5.81% from the previous close. This wide price range contributed to a high intraday volatility of 11.72%, underscoring the unsettled trading environment for the stock.
The stock’s day change registered a fall of 1.52%, which, while negative, outperformed the broader Commodity Chemicals sector that declined by 2.47% on the same day. However, Kanoria Chemicals & Industries remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
Comparative Market Context
The broader market, represented by the Sensex, experienced a decline of 0.76%, closing at 85,056.90 points after falling 567.94 points from a flat opening. Notably, the Sensex remains close to its 52-week high of 86,159.02, trading just 1.3% below this peak. The index is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average, reflecting a generally positive market trend contrasting with Kanoria Chemicals & Industries’ performance.
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Long-Term Performance and Financial Metrics
Over the past year, Kanoria Chemicals & Industries has recorded a total return of -38.73%, significantly underperforming the Sensex, which posted a positive return of 4.11% during the same period. The stock’s 52-week high was Rs.126.70, highlighting the extent of the decline to the current low.
Financially, the company’s long-term fundamentals show limited strength. The average Return on Capital Employed (ROCE) stands at 1.29%, indicating modest efficiency in generating returns from capital investments. Net sales have grown at an annual rate of 6.22% over the last five years, while operating profit has expanded at a rate of 10.85% annually during the same period. These growth rates suggest a relatively slow expansion compared to industry peers.
Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 8.49 times, signalling elevated leverage levels. This ratio points to the company’s increased burden in managing its debt obligations relative to earnings before interest, taxes, depreciation, and amortisation.
Profitability and Risk Factors
Despite the stock’s negative return over the past year, reported profits have risen by 56.1%, reflecting some improvement in earnings. However, the stock is considered risky relative to its historical valuation averages. Additionally, 29.57% of promoter shares are pledged, which can exert downward pressure on the stock price in falling markets due to potential forced selling.
Kanoria Chemicals & Industries has consistently underperformed the BSE500 index over the last three years, reinforcing the trend of subdued market performance. This persistent underperformance is a key factor in the stock’s current valuation and market sentiment.
Recent Half-Year Financial Highlights
The company’s half-year results as of September 2025 show some positive indicators. Cash and cash equivalents reached a high of Rs.46.03 crores, providing liquidity support. The debt-equity ratio improved to a low of 0.62 times, suggesting a more balanced capital structure. Furthermore, the debtors turnover ratio was recorded at 10.48 times, indicating efficient management of receivables during the period.
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Sectoral and Market Influences
The Commodity Chemicals sector, to which Kanoria Chemicals & Industries belongs, has experienced a decline of 2.47% on the day the stock hit its 52-week low. This sectoral weakness, combined with the stock’s own challenges, has contributed to the downward pressure on its share price.
While the broader market indices maintain a generally positive technical outlook, the divergence in Kanoria Chemicals & Industries’ performance highlights the stock’s distinct challenges within its industry and financial profile.
Summary of Key Price and Performance Data
• New 52-week low: Rs.70.06
• Intraday high: Rs.80.95
• Day’s price change: -1.52%
• Intraday volatility: 11.72%
• 1-year return: -38.73%
• Sector decline on day: -2.47%
• Sensex decline on day: -0.76%
Kanoria Chemicals & Industries’ current market capitalisation grade is modest, reflecting its size and valuation relative to peers. The stock’s trading below all major moving averages further emphasises the prevailing downward trend.
Overall, the stock’s fall to a 52-week low of Rs.70.06 is a notable event within the Commodity Chemicals sector, underscored by a combination of financial metrics, market conditions, and sectoral pressures.
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