Mohit Industries Ltd Stock Falls to 52-Week Low of Rs.23

Stock Performance and Market Context

On 2 Feb 2026, Mohit Industries Ltd’s share price declined by 1.81%, underperforming its sector by 1.32%. The stock has been on a losing streak for two consecutive sessions, resulting in a cumulative return drop of 2.45% during this period. Trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, the stock’s technical indicators signal sustained weakness.

In contrast, the broader market showed resilience. The Sensex, after opening 167.26 points lower, rebounded sharply by 656.47 points to close at 81,212.15, a gain of 0.61%. Mega-cap stocks led this recovery, while the Sensex itself remains below its 50-day moving average, though the 50DMA is positioned above the 200DMA, indicating a mixed medium-term trend.

Over the past year, Mohit Industries Ltd has delivered a negative return of 28.86%, significantly lagging the Sensex’s positive 4.79% gain. The stock’s 52-week high was Rs.42.55, underscoring the extent of the recent decline.

Fundamental Weaknesses Underpinning the Decline

The stock’s current valuation and performance are influenced by several fundamental factors. Mohit Industries Ltd holds a Mojo Score of 29.0 and a Mojo Grade of Strong Sell, an upgrade from its previous Sell rating on 14 Jan 2026. This reflects a deteriorated outlook based on financial metrics and operational performance.

Long-term growth has been subdued, with a compound annual growth rate (CAGR) of -15.53% in operating profits over the last five years. The company’s ability to service debt remains constrained, evidenced by a poor average EBIT to interest ratio of 0.29, indicating limited earnings before interest and taxes relative to interest expenses.

Profitability metrics also highlight challenges. The average return on equity (ROE) stands at a modest 1.31%, signalling low returns generated on shareholders’ funds. This is consistent with the stock’s underperformance relative to the BSE500 index over one year, three years, and the last three months.

Recent Financial Highlights

Despite the overall negative trend, some recent financial indicators show pockets of improvement. For the nine months ended September 2025, net sales reached Rs.102.71 crores, growing by 39.91%. The company reported its highest quarterly PBDIT at Rs.1.25 crores, and the debtors turnover ratio for the half-year was a robust 11.07 times, suggesting efficient receivables management.

Valuation metrics also present an interesting picture. With a return on capital employed (ROCE) of 0.1 and an enterprise value to capital employed ratio of 0.4, Mohit Industries Ltd is trading at a discount compared to its peers’ historical averages. Over the past year, while the stock price declined by 28.86%, profits increased by 9.3%, indicating some operational improvements not yet reflected in the share price.

Shareholding and Sector Position

Mohit Industries Ltd operates within the Garments & Apparels industry and sector, where competitive pressures and market dynamics continue to influence performance. The company’s majority shareholding rests with promoters, indicating concentrated ownership.

While the stock’s valuation is attractive relative to peers, the combination of weak long-term growth, low profitability, and limited debt servicing capacity has contributed to the recent price decline and the new 52-week low.

Summary of Key Metrics

To summarise, Mohit Industries Ltd’s stock has reached Rs.23, its lowest level in 52 weeks, reflecting a 28.86% decline over the past year. The company’s financial profile is characterised by:

• - Negative 15.53% CAGR in operating profits over five years
• - EBIT to interest ratio averaging 0.29, indicating weak debt coverage
• - Average ROE of 1.31%, signalling low profitability
• - Recent net sales growth of 39.91% for nine months ended September 2025
• - Highest quarterly PBDIT of Rs.1.25 crores
• - Debtors turnover ratio of 11.07 times for the half-year
• - Attractive valuation metrics with EV/Capital Employed at 0.4

These factors collectively explain the stock’s current valuation and price movement within the context of a recovering broader market.

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