Key Events This Week
2 Feb: Stock opens at Rs.24.21, Sensex down 1.03%
3 Feb: Stock rebounds +1.16% amid broader market rally
4 Feb: Sharp 6.53% jump on strong volume following quarterly results
5 Feb: Mixed quarterly results announced; stock dips 1.03%
6 Feb: Quality grade downgraded; stock closes at Rs.26.03 (+0.81%)
2 February: Weak Start Amid Market Sell-Off
Kothari Sugars began the week at Rs.24.21, marginally down 0.04% from the previous close, while the Sensex declined sharply by 1.03% to 35,814.09. The stock’s relative stability contrasted with the broader market weakness, reflecting early investor caution ahead of the company’s quarterly results announcement. Trading volume was moderate at 26,956 shares, indicating subdued activity as participants awaited clarity on operational performance.
3 February: Recovery Alongside Market Rally
On 3 February, the stock rebounded by 1.16% to close at Rs.24.49, supported by a strong market rally where the Sensex surged 2.63% to 36,755.96. Volume nearly doubled to 49,961 shares, signalling renewed investor interest. This uptick suggested optimism that the company’s upcoming results might show signs of stabilisation despite ongoing sector challenges.
4 February: Sharp Gains on Quarterly Results Anticipation
Kothari Sugars surged 6.53% to Rs.26.09 on 4 February, the week’s high, on heavy volume of 127,744 shares. This sharp advance preceded the release of quarterly results and reflected speculative positioning and positive sentiment around the company’s earnings potential. The Sensex also rose modestly by 0.37%, closing at 36,890.21. The stock’s outperformance highlighted investor focus on potential earnings improvement amid a difficult sugar sector environment.
5 February: Mixed Quarterly Results Temper Gains
The company reported mixed quarterly results for the December 2025 quarter, which weighed on the stock price, causing a 1.03% decline to Rs.25.82 on relatively low volume of 28,941 shares. Earnings per share improved to Rs.1.44, marking the highest quarterly EPS in recent periods, but profit before tax excluding other income plunged 66.7% to a loss of Rs.10.25 crore. Net sales contracted 25.07% year-on-year to Rs.138.13 crore, and net loss after tax widened to Rs.14.79 crore. Return on capital employed remained negative at -1.66%, underscoring persistent operational challenges. The Sensex fell 0.53% to 36,695.11, reflecting broader market caution.
Turnaround taking shape! This Small Cap from NBFC sector just hit profitability with strong business fundamentals showing up. Catch it before the major breakout happens!
- - Recently turned profitable
- - Strong business fundamentals
- - Pre-breakout opportunity
6 February: Quality Grade Downgrade Amidst Operational Concerns
On the final trading day of the week, Kothari Sugars edged up 0.81% to close at Rs.26.03 on volume of 17,381 shares. However, the company’s quality grade was downgraded from average to below average, with the Mojo Score falling to 3.0 and the Mojo Grade revised to Strong Sell. This downgrade reflected deteriorating fundamentals, including declining sales and earnings growth, modest returns on capital, and limited institutional support. Despite a conservative debt profile and reasonable interest coverage, operational inefficiencies and shrinking revenues remain key concerns. The Sensex closed marginally higher by 0.10% at 36,730.20, indicating a broadly stable market environment.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.24.21 | -0.04% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.24.49 | +1.16% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.26.09 | +6.53% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.25.82 | -1.03% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.26.03 | +0.81% | 36,730.20 | +0.10% |
Key Takeaways
Kothari Sugars demonstrated a strong weekly price performance, gaining 7.47% compared to the Sensex’s 1.51% rise, signalling short-term investor interest despite fundamental headwinds. The company’s highest quarterly EPS of Rs.1.44 was a positive highlight, yet the sharp decline in profit before tax and persistent net losses underscore ongoing operational difficulties. Negative return on capital employed and contracting revenues reflect structural challenges within the sugar sector. The recent downgrade to a Strong Sell Mojo Grade and below average quality rating further emphasise the cautious outlook. While the company maintains a conservative debt profile and reasonable interest coverage, its declining sales and earnings growth remain critical concerns. The stock’s volatility and wide trading range over the past year highlight the risk profile investors face.
Kothari Sugars & Chemicals Ltd or something better? Our SwitchER feature analyzes this micro-cap stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Conclusion
The week ending 6 February 2026 was marked by a strong price rally for Kothari Sugars & Chemicals Ltd, driven by a combination of modest earnings improvement and market dynamics. However, the company’s fundamental challenges remain pronounced, with declining revenues, negative returns on capital, and a recent downgrade in quality grade signalling caution. The stock’s outperformance relative to the Sensex this week contrasts with its longer-term underperformance and operational struggles. Investors should remain vigilant of the company’s quarterly results and sector developments, as the path to sustained profitability and growth remains uncertain. The current valuation near 52-week lows reflects these risks, underscoring the need for careful analysis before considering exposure to this micro-cap sugar sector player.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
