Meghmani Organics Ltd Hits All-Time Low Amid Prolonged Downtrend

Stock Performance Overview

On 20 Feb 2026, Meghmani Organics Ltd recorded a closing price of Rs.51.5, the lowest in its trading history. This decline is part of a broader downtrend, with the stock falling by 0.65% on the day, compared to the Sensex’s modest drop of 0.16%. Over the past three days, the stock has lost 3.88% cumulatively, continuing a streak of consecutive declines.

Examining the moving averages, Meghmani Organics is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum. The stock’s relative weakness is further underscored by its comparative performance against the Sensex and sector peers across multiple periods:

• 1 week: -4.79% vs Sensex -0.31%
• 1 month: -8.21% vs Sensex +0.23%
• 3 months: -25.88% vs Sensex -3.81%
• 1 year: -28.83% vs Sensex +8.76%
• Year-to-date: -19.66% vs Sensex -3.35%
• 3 years: -47.56% vs Sensex +35.72%

Notably, the stock has failed to generate any returns over the last five and ten years, contrasting sharply with the Sensex’s gains of 61.86% and 247.42% respectively over the same periods.

Financial Health and Profitability Metrics

Meghmani Organics Ltd’s financial indicators reveal ongoing difficulties. The company’s operating profits have declined at a compound annual growth rate (CAGR) of -17.31% over the past five years, reflecting weakening earnings capacity. This trend is mirrored in the quarterly profit after tax (PAT), which stood at a negative Rs.3.53 crores, representing a steep fall of 135.6% compared to the previous four-quarter average.

Interest expenses have increased significantly, with a 22.18% rise over the first nine months, amounting to Rs.71.38 crores. The operating profit to interest ratio for the quarter is at a low 2.08 times, indicating limited coverage of interest obligations by operating earnings. The average EBIT to interest ratio is negative at -5.58, underscoring challenges in servicing debt.

Return on equity (ROE) remains subdued, averaging 6.03%, which points to modest profitability relative to shareholders’ funds. Return on capital employed (ROCE) is at 4.6%, suggesting limited efficiency in generating returns from capital invested.

Market Capitalisation and Institutional Holding

Despite its size, Meghmani Organics holds a Market Cap Grade of 3, indicating a mid-tier valuation relative to market capitalisation standards. Domestic mutual funds currently hold no stake in the company, a notable absence given their capacity for detailed research and selective investment. This lack of institutional interest may reflect reservations about the company’s valuation or business prospects at prevailing prices.

The stock’s Mojo Score stands at 14.0, with a Mojo Grade of Strong Sell as of 1 Jan 2026, downgraded from Sell. This rating reflects the comprehensive assessment of fundamentals, momentum, and valuation metrics by MarketsMOJO’s analytical framework.

Valuation and Relative Comparison

On valuation grounds, Meghmani Organics trades at an enterprise value to capital employed ratio of 0.9, which is lower than the historical averages of its peers in the Pesticides & Agrochemicals sector. The price-to-earnings-to-growth (PEG) ratio stands at 0.2, driven by a 183.8% increase in profits over the past year despite the stock’s negative return of 28.83%. This divergence suggests that the market has not yet fully priced in recent profit improvements.

Nonetheless, the stock’s consistent underperformance against the BSE500 benchmark over the last three years, including annual returns below the index in each period, highlights persistent challenges in delivering shareholder value.

Sector Context and Comparative Performance

Operating within the Pesticides & Agrochemicals sector, Meghmani Organics’ stock performance has lagged behind sector averages and broader market indices. While the sector has experienced fluctuations, Meghmani’s declines have been more pronounced, with a 3-month loss of 25.88% compared to the Sensex’s 3.81% fall. The stock’s year-to-date return of -19.66% also contrasts with the sector’s relatively milder downturn.

The company’s valuation discount relative to peers may reflect market concerns about its financial stability and growth trajectory. The absence of institutional backing further accentuates the cautious stance adopted by market participants.

Summary of Key Financial Indicators

To encapsulate, Meghmani Organics Ltd’s key financial metrics as of early 2026 are:

• Operating profit CAGR (5 years): -17.31%
• Quarterly PAT: Rs. -3.53 crores (down 135.6%)
• Interest expense (9 months): Rs. 71.38 crores (up 22.18%)
• Operating profit to interest ratio (quarterly): 2.08 times
• Average EBIT to interest ratio: -5.58
• Average ROE: 6.03%
• ROCE: 4.6%
• Mojo Score: 14.0 (Strong Sell)
• Market Cap Grade: 3

These figures collectively illustrate the company’s current financial position and market valuation status.

Conclusion

Meghmani Organics Ltd’s fall to an all-time low price of Rs.51.5 underscores a prolonged period of underperformance and financial strain. The stock’s sustained decline across multiple time frames, combined with weak profitability metrics and limited institutional interest, paints a comprehensive picture of the challenges faced by the company within its sector. While valuation metrics suggest the stock trades at a discount relative to peers, the overall financial profile and market sentiment remain subdued as of February 2026.

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