Nikhil Adhesives Ltd Stock Falls to 52-Week Low of Rs.77.5

Stock Performance and Market Context

On 6 Jan 2026, Nikhil Adhesives Ltd’s stock closed at Rs.77.5, down 0.95% on the day, underperforming the specialty chemicals sector by 1.36%. This new low represents a substantial decline from its 52-week high of Rs.129, registering a year-on-year loss of 34.80%. In contrast, the Sensex index has delivered a positive return of 9.27% over the same period, highlighting the stock’s relative weakness.

The broader market environment showed mixed signals, with the Sensex opening 108.48 points lower and trading at 85,192.41, down 0.29%. Despite this, the Sensex remains close to its 52-week high of 86,159.02, trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish market trend. Against this backdrop, Nikhil Adhesives’ share price has consistently traded below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, underscoring its sustained downward momentum.

Financial Performance Highlights

Over the past five years, Nikhil Adhesives has recorded modest growth in net sales at an annualised rate of 8.55%, while operating profit has expanded at 17.96% annually. However, recent financial results have shown signs of strain. The company reported its lowest operating cash flow in the fiscal year at Rs.6.90 crores, signalling tighter liquidity conditions. Additionally, profit after tax (PAT) for the latest six-month period stood at Rs.6.74 crores, reflecting a contraction of 30.01% compared to prior periods.

Cash and cash equivalents also declined to a low of Rs.2.13 crores during the half-year, further indicating constrained cash reserves. These factors have contributed to the stock’s downgrade from a Hold to a Sell rating on 24 Nov 2025, with a current Mojo Score of 38.0 and a Mojo Grade of Sell. The company’s market capitalisation grade remains low at 4, consistent with its subdued market valuation.

Relative Underperformance and Valuation Metrics

Nikhil Adhesives has consistently underperformed the BSE500 benchmark over the last three years, with negative returns in each annual period. The stock’s 34.80% decline in the past year contrasts sharply with the broader market’s positive trajectory. Profitability has also deteriorated, with profits falling by 11.9% over the last twelve months.

Despite these challenges, the company maintains a high return on capital employed (ROCE) of 26.93%, indicating efficient use of capital in its operations. Its debt servicing capability remains strong, with a low Debt to EBITDA ratio of 1.17 times, suggesting manageable leverage levels. The valuation appears attractive relative to peers, with an enterprise value to capital employed ratio of 2.3, reflecting a discount compared to historical averages within the specialty chemicals sector.

Shareholding and Sector Position

The majority shareholding in Nikhil Adhesives is held by promoters, providing a stable ownership structure. The company operates within the specialty chemicals industry, a sector that has experienced varied performance across its constituents. While the broader market and sector indices have shown resilience, Nikhil Adhesives’ stock has lagged, reflecting company-specific factors influencing investor sentiment and valuation.

Technical Indicators and Moving Averages

Technical analysis reveals that Nikhil Adhesives is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This persistent weakness in price momentum suggests a lack of short- and medium-term buying interest. In contrast, the Sensex continues to trade above its 50-day and 200-day moving averages, reinforcing the divergence between the stock’s performance and the broader market trend.

The stock’s day-to-day volatility and downward trajectory have contributed to its current valuation levels, which remain subdued relative to historical highs and sector peers.

Summary of Key Metrics

To summarise, Nikhil Adhesives Ltd’s key financial and market metrics as of early January 2026 are as follows:

• 52-week low price: Rs.77.5


• 52-week high price: Rs.129


• One-year stock return: -34.80%


• Sensex one-year return: +9.27%


• Operating cash flow (latest fiscal year): Rs.6.90 crores (lowest level)


• Profit after tax (latest six months): Rs.6.74 crores, down 30.01%


• Cash and cash equivalents (half-year): Rs.2.13 crores (lowest level)


• Debt to EBITDA ratio: 1.17 times


• ROCE: 26.93%


• Enterprise value to capital employed: 2.3


• Mojo Score: 38.0 (Sell rating, downgraded from Hold on 24 Nov 2025)

The combination of subdued financial results, declining cash reserves, and persistent underperformance relative to benchmarks has contributed to the stock’s recent low price levels. While the company’s capital efficiency and debt metrics remain positive, these factors have not yet translated into improved market valuation or price momentum.

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