Key Events This Week
29 Dec 2025: Stock closes at Rs.79.78, down 2.73%
30 Dec 2025: New 52-week low of Rs.77.78 and Death Cross formation
31 Dec 2025: Minor recovery to Rs.78.05 (+0.83% Sensex gain)
2 Jan 2026: Week closes at Rs.78.76 (-0.23%)
29 December 2025: Sharp Decline Initiates Bearish Week
Nikhil Adhesives Ltd opened the week on a weak note, closing at Rs.79.78 on 29 Dec 2025, down Rs.2.24 or 2.73% from the previous close. This decline outpaced the Sensex’s 0.41% fall to 37,140.23 points, signalling early signs of selling pressure. The volume of 58,788 shares indicated moderate trading interest amid the downtrend.
30 December 2025: New 52-Week Low and Death Cross Confirm Bearish Outlook
The stock’s downward momentum intensified on 30 Dec 2025, when it touched a fresh 52-week low of Rs.77.78 intraday, closing at Rs.78.48, down 1.63% for the day. This marked a cumulative two-day loss of approximately 4% and underscored the sustained weakness. Meanwhile, the Sensex remained nearly flat, closing marginally lower by 0.01% at 37,135.83 points.
Significantly, technical analysis revealed the formation of a Death Cross, with the 50-day moving average crossing below the 200-day moving average. This crossover is widely regarded as a bearish signal, indicating a potential prolonged downtrend. Additional technical indicators such as MACD, Bollinger Bands, and KST on weekly and monthly charts also confirmed negative momentum.
Fundamentally, the stock’s recent financial performance has been underwhelming. Operating cash flow for the year stood at Rs.6.90 crores, the lowest in recent periods, while profit after tax for the latest six months declined by 30.01% to Rs.6.74 crores. Cash and cash equivalents also hit a low of Rs.2.13 crores, suggesting tighter liquidity. Despite a robust ROCE of 26.93% and manageable debt levels (Debt to EBITDA ratio of 1.17), these positives have not translated into price support.
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31 December 2025: Slight Recovery Amid Broader Market Gains
On the last trading day of 2025, Nikhil Adhesives Ltd’s stock marginally recovered to close at Rs.78.05, down 0.55% on the day but with the Sensex gaining 0.83% to 37,443.41 points. The volume of 52,941 shares suggested moderate investor activity. Despite this minor bounce, the stock remained well below key moving averages, maintaining its bearish technical posture.
1 and 2 January 2026: Consolidation with Modest Fluctuations
Trading on 1 Jan 2026 saw the stock rise by 1.14% to Rs.78.94 on relatively low volume of 19,541 shares, while the Sensex edged up 0.14%. However, this uptick was short-lived as the stock closed at Rs.78.76 on 2 Jan 2026, down 0.23%, even as the Sensex advanced 0.81% to 37,799.57 points. The week ended with the stock down 3.97% overall, underperforming the Sensex’s 1.35% gain.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2025-12-29 | Rs.79.78 | -2.73% | 37,140.23 | -0.41% |
| 2025-12-30 | Rs.78.48 | -1.63% | 37,135.83 | -0.01% |
| 2025-12-31 | Rs.78.05 | -0.55% | 37,443.41 | +0.83% |
| 2026-01-01 | Rs.78.94 | +1.14% | 37,497.10 | +0.14% |
| 2026-01-02 | Rs.78.76 | -0.23% | 37,799.57 | +0.81% |
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Key Takeaways from the Week
Negative Price Momentum: The stock’s 3.97% weekly decline, including a fresh 52-week low at Rs.77.78, highlights persistent selling pressure and weak investor sentiment.
Bearish Technical Signals: The Death Cross formation and bearish readings across MACD, Bollinger Bands, and KST indicators reinforce the likelihood of continued downward momentum.
Fundamental Challenges: Declining profit after tax, reduced operating cash flow, and low cash reserves suggest operational headwinds despite a strong ROCE and manageable leverage.
Underperformance vs Market: The stock’s fall contrasts with the Sensex’s 1.35% gain, underscoring company-specific issues rather than broad market weakness.
Valuation Discount: Trading at a P/E of 25.04 against the industry average of 40.27, the stock’s valuation reflects market concerns about its outlook.
Conclusion
Nikhil Adhesives Ltd’s performance over the week ending 2 Jan 2026 was marked by significant weakness, driven by both technical and fundamental factors. The formation of a Death Cross and a fresh 52-week low signal a bearish trend that may persist in the near term. Despite operational strengths such as a high ROCE and controlled debt, deteriorating profitability and liquidity constraints have weighed heavily on the stock price. The divergence from the broader market’s positive trajectory further emphasises company-specific challenges. Investors should note these developments carefully as the stock remains vulnerable to further declines absent a clear reversal in trend or improvement in fundamentals.
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