Recent Price Movement and Market Context
On 9 December 2025, Madhusudan Industries recorded its lowest price in the past year at Rs.31.39. The stock has experienced a continuous decline over the last three trading sessions, resulting in a cumulative return loss of 11.58% during this period. Today’s performance also showed the stock underperforming its sector by 1.56%, indicating relative weakness compared to peers in the edible oil industry.
Technical indicators reveal that Madhusudan Industries is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests a sustained downward trend in the stock’s price over multiple time horizons.
Meanwhile, the broader market index, Sensex, opened lower by 359.82 points and was trading at 84,702.31, down 0.47% on the day. Despite this minor setback, the Sensex remains close to its 52-week high of 86,159.02, just 1.72% away, and is supported by bullish moving averages with the 50-day average above the 200-day average.
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One-Year Performance and Comparative Analysis
Over the past year, Madhusudan Industries has recorded a return of -50.56%, a stark contrast to the Sensex’s positive return of 3.92% during the same period. The stock’s 52-week high was Rs.66, highlighting the extent of the decline to the current low of Rs.31.39. This performance places the company well below the broader market and its sector peers.
In addition to the one-year timeframe, the stock has underperformed the BSE500 index over the last three years, one year, and three months, indicating a longer-term trend of subdued returns relative to the market.
Financial Metrics Reflecting Company Performance
Madhusudan Industries’ financial indicators point to challenges in profitability and capital efficiency. The company’s operating profits have shown a compound annual growth rate (CAGR) of -7.86% over the last five years, signalling contraction in core earnings.
The ability to service debt appears constrained, with an average EBIT to interest ratio of -0.37, suggesting that earnings before interest and tax have been insufficient to cover interest expenses on average. This ratio highlights potential stress in meeting financial obligations.
Return on Capital Employed (ROCE) averaged 2.51%, indicating limited profitability generated per unit of total capital invested, including both equity and debt. The half-year ROCE figure was notably lower at -7.75%, reflecting recent operational pressures.
Recent Earnings and Profitability Trends
The company reported a net loss after tax (PAT) of Rs. -0.98 crore for the nine months ended September 2025, representing a decline of 44.79% compared to the corresponding period. This negative earnings trend has contributed to the stock’s subdued market performance.
Furthermore, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) have been negative, which adds to the risk profile of the stock when compared to its historical valuation averages.
Shareholding and Sector Position
Madhusudan Industries operates within the edible oil sector, a segment characterised by competitive pressures and commodity price volatility. The majority shareholding is held by promoters, which may influence strategic decisions and capital allocation.
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Summary of Key Concerns
The stock’s recent decline to Rs.31.39 marks a significant low point within a year characterised by negative returns and subdued financial results. The combination of falling operating profits, negative earnings, and weak debt servicing capacity has contributed to the current market valuation.
Trading below all major moving averages further emphasises the downward momentum in the stock price. While the broader market maintains a relatively positive stance, Madhusudan Industries’ performance remains under pressure.
Investors and market participants will note the contrast between the company’s financial metrics and the overall market environment, where indices like the Sensex continue to trade near their highs supported by bullish technical indicators.
Conclusion
Madhusudan Industries’ stock reaching a 52-week low of Rs.31.39 reflects a period of financial contraction and market challenges. The company’s earnings and profitability metrics over recent quarters and years illustrate the pressures faced within the edible oil sector and its specific operational context. The stock’s performance relative to the broader market and sector peers highlights the divergence in investor sentiment and valuation trends.
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