Stock Price Movement and Market Context
On 23 Jan 2026, Madhusudan Industries Ltd recorded an intraday low of Rs.28.01, representing a sharp fall of 7.94% on the day. The stock’s intraday high was Rs.31.50, indicating notable volatility with a weighted average price volatility of 5.85%. Over the last two trading sessions, the stock has declined by 12.62%, signalling sustained selling pressure. This performance contrasts with the miscellaneous sector’s decline of 2% on the same day, highlighting the stock’s relative underperformance by 5.94% against its sector peers.
The broader market environment was also subdued, with the Sensex falling 798.24 points or 0.94% to close at 81,537.70 after a flat opening. The Sensex is currently trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed technical signals for the market at large. Notably, the NIFTY Realty index also hit a new 52-week low today, underscoring a cautious market mood.
Technical Indicators and Moving Averages
Madhusudan Industries Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness across short, medium, and long-term technical indicators suggests a bearish trend. The stock’s 52-week high was Rs.53.95, indicating a steep decline of nearly 48% from its peak over the past year.
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Financial Performance and Profitability Metrics
The company’s financial performance has been under pressure over the past several years. Madhusudan Industries Ltd has experienced a compound annual growth rate (CAGR) of -7.86% in operating profits over the last five years, indicating a contraction in core earnings. The latest nine-month period ending September 2025 reported a net loss (PAT) of Rs. -0.98 crore, reflecting a decline of 44.79% compared to the prior period.
Return on Capital Employed (ROCE) for the half-year was recorded at a negative 7.75%, the lowest in recent history, signalling challenges in generating adequate returns from the capital invested. The average ROCE over time stands at a modest 2.51%, which is low relative to industry standards and suggests limited profitability per unit of capital.
Debt Servicing and Risk Profile
The company’s ability to service its debt remains weak, with an average EBIT to interest ratio of -0.37. This negative ratio indicates that earnings before interest and tax are insufficient to cover interest expenses, raising concerns about financial stability. The stock’s valuation is considered risky compared to its historical averages, reflecting investor caution.
Over the past year, Madhusudan Industries Ltd’s stock has delivered a return of -43.77%, significantly underperforming the Sensex, which gained 6.56% over the same period. Profitability has deteriorated sharply, with profits falling by 229.2% year-on-year, underscoring the severity of the company’s earnings decline.
Long-Term and Recent Performance Trends
The stock’s underperformance extends beyond the last year. It has lagged the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in both the near and long term. The consecutive two-day decline and the breach of the 52-week low reinforce the ongoing downtrend.
Shareholding and Sectoral Context
Madhusudan Industries Ltd operates within the edible oil industry and sector, where it faces competitive pressures. The majority shareholding is held by promoters, which may influence strategic decisions and capital allocation. The sector itself has experienced mixed performance, with the miscellaneous sector falling 2% on the day, but the stock’s decline has been notably sharper.
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Mojo Score and Ratings
Madhusudan Industries Ltd currently holds a Mojo Score of 3.0 and a Mojo Grade of Strong Sell, reflecting the company’s deteriorated fundamentals and weak market performance. This represents a downgrade from its previous Sell rating as of 29 May 2024. The Market Capitalisation Grade stands at 4, indicating a mid-tier market cap classification.
Summary of Key Metrics
The stock’s 52-week low of Rs.28.01 contrasts sharply with its 52-week high of Rs.53.95, highlighting a near 48% decline over the period. The day’s trading range was wide, with a high of Rs.31.50 and a low of Rs.28.01, reflecting heightened volatility. The stock’s performance over the last two days has been negative, with a cumulative fall of 12.62%. The company’s financial indicators, including negative EBITDA and poor debt servicing capacity, contribute to the cautious market stance.
In comparison, the Sensex has maintained a more resilient profile despite a recent dip, and the edible oil sector’s miscellaneous segment has not experienced declines as steep as those seen in Madhusudan Industries Ltd.
Conclusion
The breach of the 52-week low by Madhusudan Industries Ltd underscores the challenges faced by the company in maintaining profitability and market confidence. The combination of weak earnings growth, negative returns on capital, and financial strain has contributed to the stock’s underperformance relative to both sector peers and broader market indices. The current trading levels reflect these fundamental and technical pressures, with the stock positioned below all major moving averages and exhibiting significant volatility.
Investors and market participants will continue to monitor the company’s financial disclosures and sector developments to assess any changes in its performance trajectory.
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