Recent Price Movement and Market Context
On 19 Dec 2025, Natraj Proteins’ stock price touched Rs.32, the lowest level recorded in the past year. This price point represents a notable drop from its 52-week high of Rs.51.60, indicating a decline of approximately 38%. The stock has been on a downward trajectory for the last two trading sessions, with cumulative returns of -7.56% during this period. Today’s performance saw the stock fall by 1.35%, underperforming the edible oil sector by 2.76%.
In contrast, the broader market has shown resilience. The Sensex opened 274.98 points higher and was trading at 84,905.98, up 0.5% on the day, remaining within 1.48% of its 52-week high of 86,159.02. The Sensex is currently supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. Additionally, the BSE Small Cap index gained 0.51%, leading market segments.
Technical Indicators Signal Weak Momentum
Natraj Proteins is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests sustained selling pressure and a lack of short- to medium-term buying interest. The stock’s inability to hold above these averages contrasts with the broader market’s positive technical setup, highlighting its relative weakness.
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Financial Performance Highlights
The company’s financial results over recent periods have reflected challenges. For the nine months ended September 2025, net sales stood at Rs.76.54 crores, showing a contraction of 23.59% compared to the previous corresponding period. The quarterly PBDIT registered a loss of Rs.1.02 crores, with the operating profit to net sales ratio at -3.79%, indicating negative operating margins.
Return on Equity (ROE) averaged 6.97%, a figure that points to 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 in the business.
Long-Term Performance and Valuation Metrics
Over the past year, Natraj Proteins’ stock has delivered a total return of -27.79%, underperforming the Sensex, which recorded a positive return of 7.18% during the same period. The stock has also consistently lagged behind the BSE500 index across the last three annual periods, reflecting ongoing relative underperformance.
Despite these trends, the company’s valuation metrics indicate an attractive entry point relative to peers. The enterprise value to capital employed ratio stands at 0.7, which is below the average historical valuations of comparable companies in the edible oil sector. This suggests that the stock is trading at a discount in terms of capital utilisation.
Additionally, profits have shown a rise of 55.3% over the past year, a factor that contrasts with the stock’s price movement and may reflect operational or accounting nuances within the company’s financials.
Shareholding and Market Position
The majority of Natraj Proteins’ shares are held by non-institutional investors, which may influence liquidity and trading patterns. The company operates within the edible oil industry, a sector that has experienced varied performance across different players, with some companies benefiting from favourable commodity prices and demand dynamics.
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Summary of Key Concerns
The stock’s recent decline to Rs.32 highlights ongoing pressures faced by Natraj Proteins. The contraction in net sales and negative operating margins point to challenges in revenue generation and cost management. The company’s returns on equity and capital employed remain modest, reflecting limited profitability and capital efficiency.
Technical indicators reinforce the subdued market sentiment, with the stock trading below all major moving averages and underperforming its sector peers. The consistent underperformance relative to benchmark indices over multiple years further emphasises the difficulties in regaining investor confidence.
Valuation and Market Positioning
While the stock is trading at a discount compared to its peers, this valuation reflects the market’s assessment of the company’s current financial and operational standing. The rise in profits over the past year contrasts with the stock’s price trajectory, suggesting complexities in the company’s earnings quality or market perception.
Investors analysing Natraj Proteins should consider these factors in the context of the edible oil sector’s broader dynamics and the company’s position within it.
Market Outlook and Broader Trends
The edible oil sector continues to face a range of influences, including commodity price fluctuations, regulatory changes, and demand shifts. While the broader market indices such as the Sensex have shown strength, Natraj Proteins’ stock has not mirrored this trend, indicating company-specific factors at play.
As the stock remains at its 52-week low, it reflects the current market assessment of the company’s financial health and growth prospects within a competitive industry environment.
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