Stock Price Movement and Market Context
The stock of Natraj Proteins Ltd has been on a downward trajectory, falling by 4.96% today and underperforming its sector by 4.07%. This marks the second consecutive day of decline, with the stock losing 8.09% over this period. The current price of Rs.28 is notably below its 52-week high of Rs.51.6, reflecting a substantial depreciation of nearly 46% from that peak.
Technical indicators show the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish momentum. This contrasts with the broader market where the Sensex opened higher at 82,459.66, gaining 0.67% before settling slightly lower at 82,294.29, still up 0.47% on the day. Despite the Sensex being 4.7% shy of its 52-week high of 86,159.02, it has experienced a 4.04% decline over the past three weeks, indicating some market volatility.
Financial Performance and Profitability Metrics
Over the last year, Natraj Proteins Ltd has delivered a negative return of 24.08%, significantly underperforming the Sensex, which posted a positive 7.67% return in the same period. The company’s financial results for the nine months ended September 2025 reveal a contraction in net sales by 23.59%, amounting to Rs.76.54 crores. The quarterly PBDIT stood at a loss of Rs.1.02 crore, with the operating profit margin at a low of -3.79%, underscoring the pressure on earnings.
Return on Equity (ROE) averaged 6.97%, indicating modest profitability relative to shareholders’ funds. The Return on Capital Employed (ROCE) is reported at 1%, which, while low, is accompanied by an attractive valuation metric with an enterprise value to capital employed ratio of 0.6. This suggests that the stock is trading at a discount compared to its peers’ historical valuations.
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Long-Term Performance and Shareholding Pattern
The stock has consistently underperformed the BSE500 benchmark over the past three years, reflecting ongoing challenges in generating shareholder value. Despite this, the company’s profits have risen by 55.3% over the past year, a factor that contrasts with the negative stock returns and may indicate some operational improvements not yet reflected in market sentiment.
Majority shareholding remains with non-institutional investors, which may influence liquidity and trading dynamics. The company’s Mojo Score stands at 14.0, with a Mojo Grade of Strong Sell as of 31 July 2025, an upgrade from the previous Sell rating. The Market Cap Grade is 4, indicating a relatively modest market capitalisation within its sector.
Sector and Industry Positioning
Natraj Proteins Ltd operates within the edible oil industry, a sector that has seen mixed performance amid fluctuating commodity prices and changing consumer demand patterns. The stock’s underperformance relative to its sector peers and the broader market highlights the challenges faced by the company in maintaining competitive positioning and profitability.
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Valuation and Comparative Analysis
Despite the recent price decline, Natraj Proteins Ltd’s valuation metrics suggest it is trading at a discount relative to its peers’ historical averages. The enterprise value to capital employed ratio of 0.6 is indicative of an attractive valuation from a capital efficiency perspective. However, the company’s weak long-term fundamental strength, as reflected in its financial metrics and profitability ratios, continues to weigh on investor confidence.
The stock’s current Mojo Grade of Strong Sell reflects these concerns, signalling caution in the context of its recent performance and financial health.
Summary of Key Metrics
To summarise, the stock’s key data points include:
- New 52-week low price: Rs.28
- One-year stock return: -24.08%
- Net sales (9M Sep 2025): Rs.76.54 crores, down 23.59%
- Quarterly PBDIT: Rs.-1.02 crore
- Operating profit margin (quarterly): -3.79%
- Return on Equity (average): 6.97%
- Return on Capital Employed: 1%
- Enterprise value to capital employed: 0.6
- Mojo Score: 14.0 (Strong Sell)
- Market Cap Grade: 4
The stock’s performance and valuation metrics provide a comprehensive view of its current standing within the edible oil sector and the broader market environment.
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