Recent Price and Market Performance
On 23 Feb 2026, Meghmani Organics Ltd’s share price declined by 0.77%, underperforming the Sensex which gained 0.48% on the same day. Over the past week, the stock fell 3.73%, compared to a marginal 0.08% decline in the Sensex. The one-month performance shows a sharper contrast, with Meghmani Organics losing 7.62% while the Sensex rose 2.05%. The three-month trend is more pronounced, with the stock down 26.15% against the Sensex’s 2.37% decline.
Year-to-date, the stock has dropped 19.82%, significantly lagging the Sensex’s 2.36% fall. Over the last year, Meghmani Organics has delivered a negative return of 28.40%, while the Sensex posted a positive 10.49%. The three-year performance is particularly stark, with the stock down 45.42% compared to the Sensex’s robust 39.60% gain. Over five and ten years, the stock has shown no appreciable growth, remaining flat, whereas the Sensex has surged 67.25% and 255.45% respectively.
Technical Indicators and Moving Averages
The stock is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating a persistent bearish trend. This technical positioning suggests that short-term and long-term momentum remain weak, with no immediate signs of reversal.
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Fundamental Assessment and Financial Metrics
Meghmani Organics Ltd’s fundamental strength remains subdued, reflected in a Mojo Score of 14.0 and a Mojo Grade of Strong Sell, upgraded from Sell as of 1 Jan 2026. The company’s market capitalisation grade stands at 3, indicating a relatively modest size within its sector.
The company’s operating profits have declined at a compound annual growth rate (CAGR) of -17.31% over the past five years, signalling deteriorating earnings capacity. Profit after tax (PAT) for the latest quarter was negative ₹3.53 crore, representing a steep fall of 135.6% compared to the previous four-quarter average. Interest expenses for the nine months ended have increased by 22.18% to ₹71.38 crore, further pressuring profitability.
The operating profit to interest ratio for the quarter is at a low 2.08 times, highlighting constrained ability to cover interest costs from operating earnings. The average EBIT to interest ratio is negative at -5.58, underscoring ongoing financial strain.
Return on equity (ROE) averages 6.03%, indicating limited profitability generated per unit of shareholders’ funds. Return on capital employed (ROCE) is modest at 4.6%, suggesting subdued efficiency in capital utilisation.
Shareholding and Market Sentiment
Despite the company’s size, domestic mutual funds hold no stake in Meghmani Organics Ltd. Given that mutual funds typically conduct thorough research and maintain selective exposure, this absence may reflect cautious sentiment regarding the company’s valuation or business prospects.
Comparative Performance and Valuation
Meghmani Organics has consistently underperformed its benchmark indices over the last three years. It has also lagged the BSE500 index in each of the past three annual periods. While the stock’s one-year return is negative 28.40%, the company’s profits have risen by 183.8% during the same period, resulting in a low price-to-earnings-to-growth (PEG) ratio of 0.2. This suggests that the market valuation is discounting the company’s earnings growth.
The stock trades at an enterprise value to capital employed ratio of 0.9, which is lower than the average historical valuations of its peers, indicating an attractive valuation on a relative basis.
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Sector Context and Relative Performance
Operating within the Pesticides & Agrochemicals sector, Meghmani Organics Ltd’s stock performance has been inline with sector trends on the day of reporting but remains significantly weaker over longer time frames. The sector itself has seen mixed returns, with some peers maintaining stronger valuations and growth trajectories.
The company’s current valuation discount relative to peers may reflect market concerns about its financial health and growth sustainability, despite some recent profit improvements.
Summary of Key Financial Indicators
To summarise, Meghmani Organics Ltd’s key financial metrics as of early 2026 include:
- Mojo Score: 14.0 (Strong Sell)
- Market Cap Grade: 3
- Operating Profit CAGR (5 years): -17.31%
- PAT (latest quarter): -₹3.53 crore, down 135.6%
- Interest Expense (9 months): ₹71.38 crore, up 22.18%
- Operating Profit to Interest Ratio (quarter): 2.08 times
- Average EBIT to Interest Ratio: -5.58
- Return on Equity (average): 6.03%
- Return on Capital Employed: 4.6%
- Enterprise Value to Capital Employed: 0.9
- PEG Ratio: 0.2
These figures illustrate a company facing considerable financial headwinds, reflected in its stock price reaching historic lows and sustained underperformance relative to market benchmarks.
Conclusion
Meghmani Organics Ltd’s stock has reached an all-time low, reflecting a combination of weak long-term earnings growth, rising interest costs, and subdued profitability metrics. The stock’s consistent underperformance against the Sensex and sector peers over multiple time horizons highlights the severity of its valuation challenges. While the company’s valuation metrics suggest a discount relative to peers, the financial indicators point to ongoing pressures that have weighed on investor confidence and market performance.
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