Nikhil Adhesives Ltd Stock Falls to 52-Week Low of Rs.69.5

Recent Price Movement and Market Context

On 27 Jan 2026, Nikhil Adhesives Ltd’s share price touched an intraday low of Rs.69.5, representing a 2.2% decline on the day and a 0.41% drop compared to the previous close. This marks the lowest price level for the stock in the past 52 weeks, down sharply from its high of Rs.129. The stock has been on a losing streak for two consecutive sessions, delivering a cumulative return of -3.26% over this period.

The stock’s performance today notably lagged behind its sector peers, underperforming the Specialty Chemicals sector by 1.42%. Furthermore, Nikhil Adhesives is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum.

Broader market conditions have also been subdued. The Sensex opened lower at 81,436.79, down 100.91 points (-0.12%), and was trading marginally down by 0.06% at 81,492.22 during the session. The Sensex itself has been on a three-week losing streak, shedding 2.49% in that timeframe. Notably, other indices such as NIFTY MEDIA and NIFTY REALTY also hit new 52-week lows today, indicating sector-wide pressures.

Financial Performance and Valuation Metrics

Over the past year, Nikhil Adhesives has delivered a total return of -40.05%, significantly underperforming the Sensex, which posted an 8.13% gain over the same period. The stock has also consistently lagged behind the BSE500 index in each of the last three annual periods, highlighting a trend of underperformance relative to broader market benchmarks.

From a financial standpoint, the company’s growth metrics have been modest. Net sales have expanded at an annualised rate of 8.55% over the last five years, while operating profit has grown at 17.96% annually. Despite these growth rates, recent results have shown some softness. The latest six-month profit after tax (PAT) stood at Rs.6.74 crores, reflecting a decline of 30.01% compared to prior periods. Operating cash flow for the year was recorded at Rs.6.90 crores, the lowest level in recent times, while cash and cash equivalents at half-year stood at Rs.2.13 crores, also at a low point.

Credit and Efficiency Indicators

Despite the recent price weakness, Nikhil Adhesives exhibits strong management efficiency. The company’s return on capital employed (ROCE) stands at a robust 26.93%, indicating effective utilisation of capital resources. Additionally, the firm maintains a conservative capital structure, with a low Debt to EBITDA ratio of 1.17 times, underscoring its capacity to service debt obligations comfortably.

Valuation metrics also suggest the stock is trading at a discount relative to its peers. The enterprise value to capital employed ratio is 2.1, which is considered very attractive given the company’s operational profile. However, this valuation discount has coincided with a decline in profitability, as the company’s profits have fallen by 11.9% over the past year.

Shareholding and Market Position

The majority shareholding in Nikhil Adhesives remains with the promoters, providing a stable ownership structure. The company operates within the Specialty Chemicals sector, a segment that has experienced mixed performance in recent months, as reflected in the sector’s own volatility and the stock’s relative underperformance.

Comparative Performance and Market Sentiment

When viewed against the broader market and sector indices, Nikhil Adhesives’ performance has been subdued. The stock’s 40.05% decline over the past year contrasts sharply with the Sensex’s positive 8.13% return, highlighting a divergence in investor sentiment and market positioning. The stock’s consistent underperformance relative to the BSE500 index over the last three years further emphasises the challenges faced in maintaining competitive returns.

Market participants have also noted the stock’s downgrade in Mojo Grade from Hold to Sell as of 24 Nov 2025, reflecting a reassessment of its risk and return profile. The current Mojo Score of 38.0 aligns with this rating, indicating a cautious stance based on fundamental and technical factors.

Technical Indicators and Moving Averages

Technically, the stock’s position below all major moving averages signals a bearish trend. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie above the current price level, suggesting resistance at multiple points. This technical setup has contributed to the stock’s recent declines and the establishment of the new 52-week low.

In the context of the broader market, the Sensex is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed signals for market momentum. The Sensex’s three-week consecutive fall of 2.49% adds to the cautious environment in which Nikhil Adhesives is operating.

Summary of Key Metrics

To summarise, Nikhil Adhesives Ltd’s key metrics as of 27 Jan 2026 are:

• New 52-week low price: Rs.69.5
• 1-year stock return: -40.05%
• Sensex 1-year return: +8.13%
• Net sales growth (5 years CAGR): 8.55%
• Operating profit growth (5 years CAGR): 17.96%
• Latest six-month PAT: Rs.6.74 crores, down 30.01%
• Operating cash flow (yearly): Rs.6.90 crores (lowest)
• Cash and cash equivalents (half-year): Rs.2.13 crores (lowest)
• ROCE: 26.93%
• Debt to EBITDA ratio: 1.17 times
• Enterprise value to capital employed: 2.1
• Mojo Score: 38.0 (Sell), downgraded from Hold on 24 Nov 2025

The stock’s current valuation discount relative to peers and strong capital efficiency metrics contrast with its recent earnings decline and price weakness, painting a complex picture of its market standing.

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