Primo Chemicals Ltd Falls to 52-Week Low of Rs.18.91 Amid Continued Underperformance

Stock Price Movement and Market Context

On 26 Feb 2026, Primo Chemicals Ltd’s share price declined by 3.18% during the trading session, underperforming its sector by 6.03%. The stock reached an intraday low of Rs.18.91, establishing a fresh 52-week low. This marks a continuation of a two-day losing streak, during which the stock has fallen by 6.15%. The current price is substantially below its 52-week high of Rs.31.44, representing a decline of approximately 39.8% from that peak.

Technical indicators show the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex, despite a volatile session, remains near its 52-week high, currently trading at 82,242.51, just 4.76% shy of its peak at 86,159.02. The Sensex’s 50-day moving average remains above its 200-day average, indicating a generally positive market trend, which Primo Chemicals has not mirrored.

Financial Performance and Key Metrics

Primo Chemicals’ financial results have contributed to the stock’s subdued performance. The company reported a quarterly profit after tax (PAT) of Rs.1.05 crore, reflecting a sharp decline of 58.5% compared to the previous four-quarter average. This significant contraction in profitability has weighed on investor sentiment and valuation.

Operational efficiency metrics also highlight areas of concern. The inventory turnover ratio for the half-year period stands at 14.53 times, the lowest recorded, indicating slower movement of stock and potential inventory build-up. Additionally, the operating profit to interest coverage ratio has dropped to 3.13 times in the latest quarter, the lowest level observed, suggesting tighter margins for servicing debt obligations.

Over the past year, Primo Chemicals has generated a negative return of 31.34%, markedly underperforming the Sensex, which delivered a positive 10.32% return over the same period. The stock has also consistently lagged behind the BSE500 index in each of the last three annual periods, underscoring a pattern of relative underperformance within the broader market.

Valuation and Efficiency Indicators

Despite recent setbacks, Primo Chemicals maintains certain strengths in its financial profile. The company exhibits a high return on capital employed (ROCE) of 16.01%, reflecting efficient utilisation of capital resources. Its average debt-to-equity ratio remains low at 0.34 times, indicating a conservative capital structure with limited leverage risk.

Operating profit has demonstrated robust long-term growth, expanding at an annual rate of 70.54%. This growth trajectory contrasts with the recent decline in profits, which have fallen by 17.9% over the past year. The enterprise value to capital employed ratio stands at a modest 1.2, suggesting a valuation that is attractive relative to the company’s capital base and peers’ historical averages. This discount in valuation may reflect market caution given the recent financial results and price performance.

Shareholding and Promoter Activity

Promoter confidence in Primo Chemicals appears to have strengthened, with promoters increasing their stake by 1.05% in the previous quarter. Currently, promoters hold 32.4% of the company’s equity. This incremental stake acquisition may indicate a positive outlook from the controlling shareholders despite the stock’s recent price pressures.

Sector and Industry Positioning

Operating within the commodity chemicals sector, Primo Chemicals faces competitive pressures that have influenced its recent performance. The sector itself has experienced mixed trends, with some companies benefiting from cyclical demand and others contending with pricing pressures and input cost volatility. Primo Chemicals’ stock performance has lagged behind its sector peers, as evidenced by its relative underperformance today and over the past year.

The company’s current Mojo Score stands at 38.0, with a Mojo Grade of Sell, downgraded from Hold on 7 Jan 2026. This rating reflects the combination of recent financial results, valuation metrics, and price action. The market capitalisation grade is rated at 4, indicating a smaller market cap relative to larger peers in the commodity chemicals space.

Summary of Key Price and Performance Data

To summarise, Primo Chemicals Ltd’s stock has declined to Rs.18.91, its lowest level in 52 weeks, following a 3.18% drop on 26 Feb 2026. The stock has underperformed its sector by over 6% today and has fallen more than 31% over the past year. Profitability has contracted sharply, with PAT down 58.5% in the latest quarter and profits declining 17.9% year-on-year. Despite these challenges, the company maintains a strong ROCE of 16.01% and a conservative debt profile, alongside promoter stake increases.

These factors collectively illustrate a complex picture of Primo Chemicals’ current market standing, characterised by recent price weakness and financial headwinds, balanced by underlying operational strengths and shareholder confidence.

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