Stock Price Movement and Market Context
On 25 Nov 2025, Madhusudan Industries recorded its lowest price in the past year at Rs.34.78. Despite this, the stock outperformed its sector by 0.83% on the day, indicating some resilience relative to its edible oil peers. The stock price currently sits above its 5-day moving average but remains below the 20-day, 50-day, 100-day, and 200-day moving averages, signalling a short-term uptick amid longer-term downward trends.
In contrast, the Sensex opened 108.22 points higher and is trading at 85,048.72, just 0.89% shy of its 52-week high of 85,801.70. The index is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. Mid-cap stocks are leading the market gains, with the BSE Mid Cap index up by 0.22% on the day.
Performance Comparison Over One Year
Over the last twelve months, Madhusudan Industries has recorded a return of -38.16%, significantly lagging behind the Sensex, which has shown a positive return of 6.17% during the same period. This underperformance is further underscored by the BSE500 index’s 4.74% gain over the past year, highlighting the stock’s relative weakness within the broader market context.
Transformation in full progress! This Micro Cap from Auto Ancillary just achieved sustainable profitability after tough times. Be early to witness this powerful comeback story!
- - Sustainable profitability reached
- - Post-turnaround strength
- - Comeback story unfolding
Financial Metrics Reflecting Company Challenges
Madhusudan Industries’ financial indicators over recent years reveal areas of concern. The company’s operating profits have shown a compound annual growth rate (CAGR) of -7.86% over the last five years, indicating contraction in core earnings. Additionally, the average EBIT to interest ratio stands at -0.37, reflecting difficulties in covering interest expenses from operating earnings.
The return on capital employed (ROCE) averaged 2.51%, suggesting limited profitability relative to the total capital invested in the business. The half-year ROCE figure was notably lower at -7.75%, further emphasising the challenges faced in generating returns from capital.
Recent Quarterly Results and Profitability Trends
The company reported a net loss after tax (PAT) of Rs.-0.68 crore in the most recent quarter, representing a decline of 128.6% compared to the average of the previous four quarters. This negative PAT aligns with the broader trend of shrinking profitability, as reflected in the negative EBITDA figures over the past year.
Profitability has contracted sharply, with profits falling by 229.2% over the last twelve months. This decline has contributed to the stock’s riskier valuation profile relative to its historical averages.
Shareholding and Sectoral Position
Madhusudan Industries operates within the edible oil sector, a segment that has experienced mixed performance amid fluctuating commodity prices and supply chain dynamics. The company’s majority shareholding remains with promoters, maintaining concentrated ownership control.
Is Madhusudan Industries your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Summary of Key Challenges
The stock’s decline to Rs.34.78 marks a significant low point in its 52-week trading range, with the previous high at Rs.68. The company’s financial data points to subdued growth in operating profits, difficulties in servicing debt obligations, and limited returns on capital. These factors have contributed to the stock’s underperformance relative to the broader market and its sector peers.
While the broader market indices, including the Sensex and mid-cap segments, have shown positive momentum, Madhusudan Industries has not mirrored this trend, reflecting company-specific pressures within the edible oil industry.
Market Valuation and Risk Considerations
The stock’s valuation appears elevated in relation to its recent earnings performance, with negative EBITDA and declining profitability metrics underscoring the risk profile. The divergence between short-term moving averages and longer-term averages suggests that the stock is experiencing downward pressure despite some recent price support.
Investors monitoring Madhusudan Industries will note the contrast between the company’s financial trajectory and the broader market’s positive environment, highlighting the importance of analysing sector-specific and company-specific factors in portfolio decisions.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
