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 is notably below its 52-week high of Rs.10.45, indicating a substantial reduction in market valuation. The stock underperformed its sector by 0.92% on the day, while the broader Sensex index experienced a decline of 0.37%, closing at 85,396.51 points after falling 228.33 points from its flat opening.
Despite the Sensex trading near its 52-week high and maintaining a bullish stance above its 50-day and 200-day moving averages, Nagarjuna Fertilizers & Chemicals remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning highlights the stock’s relative weakness compared to the broader market and its sector peers.
Performance Over the Past Year
Over the last twelve months, Nagarjuna Fertilizers & Chemicals has delivered a return of -58.48%, contrasting sharply with the Sensex’s positive return of 4.51% during the same period. This underperformance extends beyond the past year, with the stock consistently lagging behind the BSE500 index in each of the last three annual periods. Such sustained underperformance reflects ongoing challenges faced by the company within the fertilisers sector.
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Financial Health and Debt Profile
Nagarjuna Fertilizers & Chemicals currently reports a negative book value, indicating that its liabilities exceed its assets on the balance sheet. This situation points to a weak long-term fundamental strength. The company’s debt servicing capacity is constrained, with a Debt to EBITDA ratio of 6.80 times, signalling elevated leverage relative to earnings before interest, taxes, depreciation, and amortisation.
Recent financial disclosures reveal losses and a negative net worth, which are critical factors affecting the company’s financial stability. The cash and cash equivalents stood at Rs.6.34 crores in the half-year period, while the debtors turnover ratio was recorded at 0.00 times, underscoring challenges in receivables management and liquidity.
Profitability and Valuation Concerns
The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) have been negative, contributing to a risky valuation profile compared to its historical averages. Over the past year, profits have declined by 101.2%, reflecting a complete erosion of profitability. This financial trajectory has weighed heavily on the stock price, which has reflected these adverse developments.
Promoter Shareholding and Market Pressure
Approximately 37.58% of promoter shares are pledged, which can exert additional downward pressure on the stock price, particularly in falling markets. High levels of pledged shares often indicate potential liquidity needs or financial stress within the promoter group, factors that can influence market sentiment and share price movements.
Sector and Benchmark Comparison
Within the fertilisers sector, Nagarjuna Fertilizers & Chemicals has shown consistent underperformance relative to its peers and the broader market indices. While the Sensex maintains a positive trend and trades above key moving averages, the stock’s persistent decline and valuation challenges set it apart from the sector’s general performance.
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Summary of Key Metrics
The stock’s current price of Rs.4.02 is significantly below its 52-week high of Rs.10.45, representing a decline of over 60%. The five-day consecutive fall has resulted in a cumulative return of -7.88%, while the one-year return stands at -58.48%. The company’s financial indicators, including negative net worth, high debt to EBITDA ratio, and negative EBITDA, highlight ongoing financial pressures. Additionally, the high proportion of pledged promoter shares adds to the stock’s vulnerability in volatile market conditions.
Market Environment
While the broader market, as represented by the Sensex, remains close to its 52-week high and trades above key moving averages, Nagarjuna Fertilizers & Chemicals has not mirrored this positive trend. The divergence between the stock’s performance and the market’s overall strength underscores company-specific factors influencing its valuation and price movement.
Conclusion
Nagarjuna Fertilizers & Chemicals’ fall to a 52-week low of Rs.4.02 reflects a combination of financial strain, valuation concerns, and market pressures. The stock’s position below all major moving averages and its underperformance relative to sector and benchmark indices highlight the challenges it faces. The company’s financial statements reveal significant leverage and negative net worth, which are critical considerations in understanding the stock’s current valuation and price behaviour.
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