Lotus Chocolate Company Ltd Stock Falls to 52-Week Low of Rs.617

Stock Performance and Market Context

On the day, Lotus Chocolate’s share price touched an intraday low of Rs.617, closing with a day change of -5.36%, underperforming its FMCG sector peers by -4.78%. The stock has been on a downward trajectory for two consecutive sessions, losing -8.86% over this period. This decline places the stock well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

In contrast, the Sensex opened flat but later declined by -246.25 points (-0.34%) to close at 82,961.13, remaining 3.85% below its 52-week high of 86,159.02. The benchmark index has experienced a three-week consecutive fall, losing -3.27% in this span. Despite the broader market’s modest retreat, Lotus Chocolate’s 1-year performance has been notably weaker, with a return of -44.43% compared to the Sensex’s positive 7.65% over the same period.

The stock’s 52-week high was Rs.1,525, highlighting the steep decline of nearly 60% from its peak within the last year.

Financial Metrics and Profitability Trends

Lotus Chocolate’s financial health remains under pressure, reflected in its MarketsMOJO Mojo Score of 15.0 and a recent downgrade to a Strong Sell rating on 14 Oct 2025, from a previous Sell grade. The company’s market capitalisation grade stands at 3, indicating a relatively modest market cap within its sector.

The company’s ability to service debt is a key concern, with a high Debt to EBITDA ratio of 3.28 times. This elevated leverage ratio suggests increased financial risk and limited flexibility in managing interest obligations. Supporting this, the operating profit to interest coverage ratio for the latest quarter is at a low -2.60 times, underscoring the strain on earnings relative to interest expenses.

Operating profit has deteriorated significantly over the last five years, with an annualised decline rate of -181.48%. This negative trend has been accompanied by a fall in net sales of -16.71% in the December 2025 quarter, contributing to the company’s declaration of very negative results. The company has reported negative results for three consecutive quarters, including the June 2025 quarter, which marked the fifth consecutive quarter of losses.

Profit after tax (PAT) for the latest quarter stood at Rs.0.14 crore, plunging by -94.1% compared to the average of the previous four quarters. Meanwhile, interest expenses have increased by 22.18% over the last six months, reaching Rs.8.65 crore, further pressuring profitability.

Valuation and Market Position

The stock is trading at valuations that are considered risky relative to its historical averages. Over the past year, the company’s profits have fallen by -69.8%, while the stock price has declined by -44.43%. This divergence indicates that the market is pricing in the deteriorating earnings outlook but also reflects the broader challenges faced by the company.

Despite its size within the FMCG sector, domestic mutual funds hold no stake in Lotus Chocolate, which may reflect a cautious stance given the company’s recent financial performance and risk profile. This absence of institutional backing contrasts with the broader market, where the BSE500 index has generated a positive return of 6.22% over the last year, highlighting Lotus Chocolate’s underperformance.

Sector and Industry Comparison

Operating within the FMCG sector, Lotus Chocolate’s recent performance contrasts with sector trends, where many peers have maintained more stable earnings and valuations. The stock’s underperformance relative to the sector by -4.78% on the day and its sustained decline over the past year highlight the challenges specific to the company rather than broader sector weakness.

The company’s financial metrics, including profitability and leverage ratios, remain below sector averages, contributing to its current market valuation and rating status. The lack of institutional investment further emphasises the cautious market sentiment surrounding the stock.

Summary of Key Financial Indicators

To summarise, Lotus Chocolate Company Ltd’s key financial indicators as of January 2026 are:

• New 52-week low price: Rs.617


• 1-year stock return: -44.43%


• Debt to EBITDA ratio: 3.28 times


• Operating profit annual growth (5 years): -181.48%


• Net sales decline (latest quarter): -16.71%


• PAT (latest quarter): Rs.0.14 crore, down -94.1%


• Interest expense growth (6 months): +22.18%


• Mojo Score: 15.0 (Strong Sell)


• Market cap grade: 3

These figures collectively illustrate the financial pressures and market challenges faced by Lotus Chocolate, reflected in its recent share price decline to a new 52-week low.

Market Sentiment and Trading Patterns

The stock’s trading below all major moving averages indicates a prevailing bearish sentiment among market participants. The consecutive days of price decline and the significant underperformance relative to the Sensex and FMCG sector peers reinforce this trend. The broader market’s modest decline contrasts with the sharper fall in Lotus Chocolate’s shares, suggesting company-specific factors are driving the recent price action.

Given the company’s financial metrics and recent results, the stock remains under close observation for any changes in its earnings trajectory or capital structure that might influence future price movements.

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