Recent Price Movements and Market Context
On the day in question, Kronox Lab’s share price fell by 1.33%, underperforming the Sensex which declined by a marginal 0.09%. This drop extends a two-day losing streak, during which the stock has shed 2.76% of its value. The current price of Rs.129 represents both a 52-week and an all-time low for the company, underscoring the depth of the recent decline.
The stock’s performance over various time frames further illustrates its challenges. Over the past week, Kronox Lab has declined by 5.64%, compared to a 1.93% fall in the Sensex. The one-month return stands at -2.23%, while the three-month figure is notably negative at -10.73%, contrasting with the Sensex’s positive 2.36% gain over the same period.
Longer-term figures reveal a more pronounced divergence from market benchmarks. Over the last year, the stock has lost 31.34%, whereas the Sensex has appreciated by 8.36%. Year-to-date performance also shows a 3.67% decline for Kronox Lab, compared to a 1.31% drop in the Sensex. Over three and five years, the stock has effectively stagnated with zero returns, while the Sensex has surged by 38.45% and 72.41% respectively. The ten-year comparison is even starker, with the Sensex up 237.32% and Kronox Lab showing no growth.
Technical Indicators and Valuation Metrics
From a technical standpoint, Kronox Lab is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning typically signals sustained downward momentum and a lack of short-term buying interest.
Valuation metrics present a complex picture. The company’s Return on Equity (ROE) is reported at 28.6%, which is relatively high. However, this is accompanied by a Price to Book Value ratio of 5.6, indicating a valuation that the market currently considers expensive relative to its book value. This disparity suggests that despite profitability, the market is cautious about the stock’s growth prospects or risk profile.
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Financial Performance and Growth Trends
Over the past five years, Kronox Lab’s net sales have grown at an annualised rate of 6.80%, reflecting modest expansion within its Specialty Chemicals niche. However, the company reported flat results in the September 2025 quarter, indicating a pause in momentum.
Profitability has shown some improvement, with profits rising by 19% over the last year. Despite this, the stock’s market performance has not mirrored these gains, as evidenced by the 31.34% decline in share price during the same period.
The company’s debt profile remains conservative, with an average Debt to Equity ratio of zero, suggesting minimal leverage. Majority ownership rests with promoters, which may influence strategic decisions and capital allocation.
Comparative Performance Within the Sector and Market
Kronox Lab’s returns have lagged behind the broader BSE500 index across multiple time frames, including the last three years, one year, and three months. This underperformance highlights the stock’s relative weakness within both its sector and the wider market.
The Mojo Score assigned to Kronox Lab is 30.0, accompanied by a Mojo Grade of Sell as of 07 Oct 2025, a downgrade from its previous Hold rating. The Market Cap Grade stands at 4, reflecting its micro-cap status and associated liquidity and volatility considerations.
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Summary of Key Challenges
The stock’s persistent decline to an all-time low is underpinned by a combination of factors. Despite a respectable ROE and profit growth, the valuation remains elevated relative to book value, which may reflect market concerns about sustainability. The lack of significant sales growth acceleration and flat quarterly results contribute to subdued investor sentiment.
Additionally, the stock’s consistent underperformance relative to major indices and sector peers over multiple time horizons highlights the difficulty in regaining upward momentum. The absence of leverage provides financial stability but may also limit aggressive expansion or investment initiatives.
Overall, Kronox Lab Sciences Ltd’s current market position is characterised by subdued price performance, cautious valuation, and modest growth metrics within the Specialty Chemicals sector.
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