Stock Price Movement and Market Context
On 10 December 2025, New Light Industries’ stock price touched Rs.1.32, establishing both a fresh 52-week and all-time low. This price point contrasts sharply with the stock’s 52-week high of Rs.13.11, underscoring a substantial contraction in market value over the past year. The stock’s performance today underperformed its sector by 0.38%, while the broader Sensex index advanced by 0.21%, closing at 84,847.34 points. Notably, the Sensex remains within 1.55% of its own 52-week high of 86,159.02, supported by bullish moving averages.
New Light Industries is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This persistent downward trend in price levels indicates sustained selling pressure and a lack of short-term momentum.
Financial Performance Overview
The company’s financial indicators reveal several areas of concern. Net sales for the nine-month period stand at Rs.7.84 crores, reflecting a contraction of 34.78% compared to prior periods. Cash and cash equivalents at the half-year mark are notably low at Rs.0.03 crores, suggesting limited liquidity buffers. Additionally, the debtors turnover ratio is at 1.83 times, indicating slower collection cycles relative to industry norms.
Long-term financial metrics also highlight challenges. The average Return on Capital Employed (ROCE) is recorded at 3.39%, a figure that points to modest capital efficiency. Operating profit has grown at an annual rate of 13.46% over the last five years, which, while positive, has not translated into robust profitability or valuation support. The company’s ability to service debt is weak, with an average EBIT to interest ratio of -0.04, signalling difficulties in covering interest expenses from operating earnings.
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Comparative Performance and Valuation
Over the last year, New Light Industries has generated a return of -88.39%, a stark contrast to the Sensex’s positive 4.09% return over the same period. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. This underperformance highlights the stock’s relative weakness within the broader market and its sector.
Despite these challenges, the company’s return on equity (ROE) stands at 7.3%, and the stock trades at a price-to-book value of 0.8. These figures suggest that the stock is valued at a discount relative to its peers’ historical valuations. Furthermore, profits have risen by 31% over the past year, with a price/earnings to growth (PEG) ratio of 0.4, indicating that earnings growth has outpaced the decline in share price to some extent.
Shareholding and Sector Position
New Light Industries operates within the Trading & Distributors sector, a segment that has seen mixed performance in recent months. The majority of the company’s shares are held by non-institutional investors, which may influence trading dynamics and liquidity. The sector itself has experienced some leadership from small-cap stocks, with the BSE Small Cap index gaining 0.63% on the day the stock hit its low.
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Summary of Key Financial Indicators
New Light Industries’ financial profile is characterised by subdued sales growth, limited liquidity, and constrained debt servicing capacity. The stock’s current valuation metrics reflect a discount relative to peers, with a price-to-book ratio below 1. The company’s profitability metrics, including ROCE and ROE, remain modest, while recent profit growth contrasts with the steep decline in share price.
The stock’s movement below all major moving averages signals a continuation of the downward trend, despite broader market strength and sector gains. Investors analysing the stock will note the divergence between the company’s profit growth and its market valuation, as well as the challenges posed by its financial ratios.
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