Link Pharma Chem Ltd Falls to 52-Week Low of Rs.28 Amidst Continued Downtrend

Stock Price Movement and Market Context

On 9 Jan 2026, Link Pharma Chem Ltd’s share price declined to Rs.28, the lowest level recorded in the past year. This new low comes after two consecutive days of losses, during which the stock has fallen by 6.48%. Despite this, the stock marginally outperformed its sector by 0.79% on the day. However, the broader market environment remains subdued, with the Sensex falling by 445.85 points (-0.72%) to close at 83,576.24, following a negative opening. The Sensex remains 3.09% below its 52-week high of 86,159.02 and is trading below its 50-day moving average, although the 50DMA itself is above the 200DMA, indicating mixed signals for the broader market.

Link Pharma Chem’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. This technical positioning underscores the prevailing bearish sentiment surrounding the stock.

Long-Term Performance and Financial Metrics

Over the past year, Link Pharma Chem Ltd has delivered a negative return of 30.98%, significantly underperforming the Sensex, which posted a positive return of 7.67% during the same period. The stock’s 52-week high was Rs.42.80, highlighting the extent of the decline to the current low of Rs.28.

The company’s financial fundamentals have been under pressure, contributing to the stock’s weak performance. Operating profits have declined at a compounded annual growth rate (CAGR) of -153.94% over the last five years, indicating a substantial erosion in core profitability. This deterioration is reflected in the company’s ability to service its debt, with an average EBIT to interest ratio of just 0.72, signalling limited coverage of interest expenses by earnings before interest and tax.

Return on equity (ROE) has averaged 4.94%, a relatively low figure that points to modest profitability generated per unit of shareholders’ funds. Additionally, the company reported flat results in the half-year ended September 2025, with a debtors turnover ratio of 5.07 times, the lowest in recent periods, suggesting slower collection of receivables.

Valuation and Risk Considerations

The stock is currently trading at valuations that are considered risky relative to its historical averages. Over the last year, profits have fallen by 107%, compounding concerns about the company’s earnings trajectory. This has contributed to the stock’s downgrade to a Mojo Grade of Strong Sell, an update made on 19 May 2025 from its previous Sell rating. The Mojo Score stands at 12.0, reflecting weak long-term fundamental strength and heightened risk.

Link Pharma Chem Ltd has consistently underperformed the BSE500 index over the past three years, reinforcing the trend of subpar returns. The company’s market capitalisation grade is rated at 4, indicating a relatively modest market cap within its sector.

Shareholding and Sectoral Position

The company operates within the Commodity Chemicals industry and sector, a segment that has faced volatility in recent times. Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction.

Summary of Key Financial and Market Indicators

To summarise, Link Pharma Chem Ltd’s stock has reached a 52-week low of Rs.28, reflecting ongoing challenges in profitability and valuation. The stock’s performance over the last year has been notably weaker than the benchmark Sensex, with a return of -30.98% compared to the Sensex’s 7.67%. The company’s operating profits have declined sharply, and its ability to cover interest expenses remains limited. These factors have contributed to a downgrade in its Mojo Grade to Strong Sell, underscoring the cautious stance reflected in its current market valuation.

While the broader market shows some resilience, with the Sensex trading near its 52-week high, Link Pharma Chem Ltd’s share price remains under pressure, trading below all major moving averages. The company’s sector, Commodity Chemicals, continues to face headwinds, which are mirrored in the stock’s performance and financial metrics.

Unlock special upgrade rates for a limited period. Start Saving Now →