Stock Performance and Market Context
On 1 Feb 2026, KG Petrochem Ltd’s shares opened sharply lower at Rs.190.05, down 4.97% from the previous close. The stock has been on a consistent downward trajectory, recording losses for eight consecutive trading sessions and delivering a cumulative return of -25.37% over this period. Intraday, the stock touched its lowest point at Rs.190.05, which also represents its new 52-week low.
The stock’s performance today notably lagged behind its sector peers, underperforming the Garments & Apparels sector by 6.04%. This contrasts with the broader market, where the Sensex opened 119.19 points higher and traded at 82,486.35, up 0.26%. The Sensex remains within 4.45% of its own 52-week high of 86,159.02, supported by gains in mega-cap stocks.
KG Petrochem’s share price is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. This technical weakness further emphasises the stock’s challenging position relative to market momentum.
Financial Metrics Highlighting Challenges
Several financial indicators underline the difficulties faced by KG Petrochem Ltd. The company’s long-term operating profit growth has been negative, with a compound annual growth rate (CAGR) of -18.32% over the past five years. This decline in profitability is a key factor contributing to the stock’s weak performance.
Debt servicing capacity is another area of concern. The company’s Debt to EBITDA ratio stands at 4.73 times, indicating a relatively high leverage level that may constrain financial flexibility. Additionally, the average Return on Equity (ROE) is modest at 5.15%, reflecting limited profitability generated from shareholders’ funds.
Recent quarterly results further illustrate these pressures. For the nine months ended September 2025, interest expenses rose sharply by 51.49% to Rs.7.62 crores. The quarterly profit after tax (PAT) was negative at Rs.-0.22 crores, a decline of 214.3% compared to the previous period. The operating profit to interest coverage ratio for the quarter was just 1.09 times, signalling tight margins for meeting interest obligations.
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Comparative Performance and Valuation
Over the past year, KG Petrochem Ltd has delivered a total return of -34.04%, significantly underperforming the Sensex, which posted a positive return of 7.47% during the same period. The stock has also lagged behind the broader BSE500 index over the last three years, one year, and three months, indicating persistent underperformance relative to the market.
Despite these challenges, the company’s valuation metrics present a contrasting picture. The Return on Capital Employed (ROCE) is reported at 3.5%, and the enterprise value to capital employed ratio stands at a low 0.7, suggesting an attractive valuation relative to capital invested. The stock is trading at a discount compared to its peers’ average historical valuations, which may reflect market caution given the company’s recent financial results.
Profit growth over the past year has been positive, with a 9.2% increase, although this has not translated into share price gains. The Price/Earnings to Growth (PEG) ratio is 2.1, indicating that the stock’s price may not fully reflect its earnings growth potential.
Shareholding and Market Grade
The majority ownership of KG Petrochem Ltd remains with the promoters, maintaining a stable shareholding structure. However, the company’s overall market capitalisation is graded at 4, reflecting its mid-cap status with associated liquidity and size considerations.
MarketsMOJO has assigned KG Petrochem Ltd a Mojo Score of 17.0, with a current Mojo Grade of Strong Sell as of 26 Nov 2025, an upgrade from the previous Sell rating. This grading reflects the company’s weak long-term fundamentals and recent financial performance.
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Summary of Key Financial and Market Indicators
KG Petrochem Ltd’s recent share price decline to Rs.190.05 marks a significant technical low, reflecting a combination of subdued financial performance and market sentiment. The company’s negative operating profit growth over five years, high leverage, and limited profitability metrics have contributed to its current standing.
While the stock’s valuation ratios suggest it is trading at a discount relative to capital employed and peers, the persistent underperformance in returns and recent quarterly results highlight ongoing challenges. The stock’s position below all major moving averages further underscores the prevailing downward momentum.
In the context of a broadly positive market environment, with the Sensex near its 52-week high and mega-cap stocks leading gains, KG Petrochem Ltd’s share price movement stands out as a notable divergence within the Garments & Apparels sector.
Conclusion
The fall of KG Petrochem Ltd to its 52-week low of Rs.190.05 encapsulates a period of sustained price weakness driven by financial headwinds and market dynamics. The stock’s performance contrasts with broader market strength and sector trends, reflecting specific company-level factors that have weighed on investor confidence and valuation.
As of 1 Feb 2026, the stock remains under close observation given its technical and fundamental profile, with the Mojo Grade of Strong Sell signalling caution based on comprehensive analysis of its financial health and market position.
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