Recent Price Movement and Market Context
On 8 December 2025, Nagarjuna Fertilizers & Chemicals recorded its lowest price in the past year at Rs.4.02. This level represents a substantial drop from its 52-week high of Rs.10.45, reflecting a decline of over 61%. The stock has been on a downward trajectory for five consecutive trading sessions, resulting in a cumulative return of -7.88% during this period. In comparison, the broader Fertilizers sector outperformed the stock by 0.92% on the same day.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This contrasts with the broader market, where the Sensex opened flat but later declined by 228.33 points, or 0.37%, closing at 85,396.51. Notably, the Sensex remains close to its 52-week high of 86,159.02, trading 0.89% below that peak and maintaining a bullish stance above its 50-day and 200-day moving averages.
Financial Performance and Balance Sheet Indicators
Over the past year, Nagarjuna Fertilizers & Chemicals has experienced a return of -58.48%, significantly underperforming the Sensex, which posted a positive return of 4.51% over the same period. The company’s financial statements reveal several areas of concern. It reported losses in recent quarters, contributing to a negative net worth position. This situation suggests that the company’s liabilities exceed its assets, a factor that weighs heavily on investor sentiment and market valuation.
The company’s debt profile also presents challenges. With a Debt to EBITDA ratio of 6.80 times, the ability to service debt obligations is constrained. This high leverage ratio indicates that earnings before interest, taxes, depreciation, and amortisation are insufficient relative to the debt burden. Additionally, the cash and cash equivalents stood at Rs.6.34 crores in the half-year period, a relatively low figure that limits liquidity flexibility.
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Operational Metrics and Risk Factors
The company’s debtor turnover ratio for the half-year period was recorded at 0.00 times, indicating a lack of collections or sales turnover from debtors during this timeframe. This metric points to potential issues in receivables management or sales activity. Furthermore, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) have been negative, reflecting ongoing losses at the operational level.
Promoter shareholding also presents a risk element. Approximately 37.58% of promoter shares are pledged, which can exert additional downward pressure on the stock price in volatile or declining markets. High pledged share percentages often signal potential liquidity needs or financial stress within the promoter group.
Comparative Performance and Market Position
Over the last three years, Nagarjuna Fertilizers & Chemicals has consistently underperformed the BSE500 index, with annual returns lagging behind the broader market benchmark. This trend continued in the most recent year, where the stock’s negative return of 58.48% contrasted sharply with the positive performance of the Sensex and other major indices.
The stock’s valuation metrics also indicate a riskier profile relative to its historical averages. The decline in profits by over 100% in the past year underscores the challenges faced by the company in generating sustainable earnings.
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Summary of Key Concerns
Nagarjuna Fertilizers & Chemicals’ stock price reaching Rs.4.02 marks a significant low point in its recent trading history. The company’s financial indicators, including negative net worth, high debt leverage, and negative EBITDA, highlight the challenges it faces in maintaining financial stability. The low cash reserves and zero debtor turnover ratio further illustrate liquidity and operational constraints.
Market conditions have not favoured the stock either, with the broader Sensex maintaining strength near its 52-week high while Nagarjuna Fertilizers & Chemicals continues to lag behind. The high percentage of pledged promoter shares adds an additional layer of risk in the current market environment.
While the stock’s performance over the past year and longer term has been below market benchmarks, these factors collectively provide a comprehensive view of the current state of Nagarjuna Fertilizers & Chemicals in the stock market.
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