Natraj Proteins Ltd Falls to 52-Week Low Amidst Continued Underperformance

Stock Price Movement and Market Context

The stock of Natraj Proteins Ltd fell to Rs.30.15, its lowest level in the past year, representing a notable drop from its 52-week high of Rs.51.60. Despite outperforming its sector by 1.14% on the day, the stock remains substantially below its key moving averages, trading lower than the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This persistent weakness contrasts with the broader market, where the Sensex opened flat and is currently trading at 84,983.02, just 1.38% shy of its 52-week high of 86,159.02. The Sensex also maintains a bullish stance, trading above its 50-day moving average, which itself is above the 200-day moving average.

Financial Performance and Profitability Metrics

Natraj Proteins Ltd’s financial results continue to reflect subdued performance. The company reported net sales of Rs.76.54 crores for the nine months ended September 2025, representing a decline of 23.59% compared to the previous period. The quarterly PBDIT stood at a negative Rs.1.02 crore, with the operating profit to net sales ratio at -3.79%, indicating ongoing pressure on profitability margins.

Return on Equity (ROE) averaged 6.97%, signalling modest profitability relative to shareholders’ funds. Meanwhile, the Return on Capital Employed (ROCE) was recorded at 1%, suggesting limited efficiency in generating returns from capital invested. Despite these figures, the company’s valuation metrics show some attractiveness, with an enterprise value to capital employed ratio of 0.7, indicating the stock is trading at a discount relative to its capital base.

Comparative Performance and Market Position

Over the past year, Natraj Proteins Ltd has underperformed significantly against the benchmark indices. The stock has delivered a negative return of 26.29%, while the Sensex has gained 7.98% over the same period. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the previous three annual periods.

The company’s Mojo Score currently stands at 14.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 31 July 2025. This reflects a deteriorated outlook based on the company’s financial health and market metrics. The market capitalisation grade is rated at 4, indicating a relatively small market cap within its sector.

Shareholding and Valuation Insights

Majority shareholding in Natraj Proteins Ltd is held by non-institutional investors, which may influence liquidity and trading dynamics. Despite the challenges, the stock is trading at a discount compared to its peers’ average historical valuations, which could be a factor for valuation-conscious market participants.

Interestingly, while the stock price has declined, the company’s profits have risen by 55.3% over the past year, suggesting some improvement in underlying earnings despite the negative sales growth and operating losses.

Summary of Key Metrics

To summarise, Natraj Proteins Ltd’s stock has reached a 52-week low of Rs.30.15, reflecting ongoing pressures in sales and profitability. The company’s financial indicators, including negative quarterly PBDIT and low ROE, highlight the challenges faced in generating shareholder value. The stock’s valuation metrics suggest it is trading at a discount relative to capital employed and peer valuations, while its market cap grade and Mojo Score indicate a cautious stance from the market.

Meanwhile, the broader market environment remains relatively stable, with the Sensex maintaining a bullish trend and trading near its 52-week high. This divergence underscores the specific difficulties faced by Natraj Proteins Ltd within the edible oil sector.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →