Rajshree Sugars & Chemicals Ltd Falls to 52-Week Low of Rs.25.05

Stock Performance and Market Context

On 26 Feb 2026, Rajshree Sugars & Chemicals Ltd’s share price fell to Rs.25.05, its lowest level in the past year. This new low contrasts sharply with its 52-week high of Rs.52.50, indicating a depreciation of over 52% from the peak. The stock’s performance over the last 12 months has been notably weak, delivering a negative return of 42.97%, while the broader Sensex index has gained 10.50% over the same period.

The stock’s decline today also outpaced its sector peers, underperforming the sugar sector by 0.47%. Rajshree Sugars is currently trading below all key moving averages — the 5-day, 20-day, 50-day, 100-day, and 200-day averages — signalling sustained bearish momentum. This technical positioning underscores the stock’s vulnerability relative to both short-term and long-term price trends.

Meanwhile, the Sensex opened higher at 82,418.78 points, up 0.17%, and was trading near 82,393.33 points at the time of reporting. The benchmark remains 4.57% below its 52-week high of 86,159.02, with mega-cap stocks leading the market gains. Despite a generally positive market environment, Rajshree Sugars has continued to lag behind, reflecting company-specific challenges.

Financial Metrics Highlighting Current Concerns

Rajshree Sugars & Chemicals Ltd’s financial profile reveals several areas of concern that have contributed to the stock’s decline. The company has reported negative results for three consecutive quarters, with net sales in the latest quarter at Rs.97.99 crores, down 23.7% compared to the previous four-quarter average. Profit before tax excluding other income (PBT less OI) plunged by 132.6% to a loss of Rs.20.25 crores in the same period.

For the nine months ended, the company posted a net loss after tax (PAT) of Rs.28.92 crores, representing a 23.87% deterioration. These figures underscore the challenges faced in maintaining revenue growth and profitability.

Long-term fundamentals also remain weak. The company’s operating profit has declined at an annualised rate of 249.91% over the past five years, indicating sustained pressure on core earnings. Additionally, the average return on equity (ROE) stands at a modest 3.09%, reflecting limited profitability relative to shareholder funds.

Rajshree Sugars carries a high debt burden, with an average debt-to-equity ratio of 13.31 times, which is considerably elevated and adds financial risk. The company’s market capitalisation grade is rated 4, while its overall Mojo Score is 3.0, with a recent downgrade from Sell to Strong Sell on 5 Nov 2024. This downgrade reflects deteriorating fundamentals and heightened risk perceptions.

Stock Valuation and Risk Factors

The stock’s valuation metrics further illustrate the risk profile. Over the past year, profits have fallen by 241.8%, while the stock price has declined by 42.97%. This disparity suggests that the market is pricing in the company’s earnings deterioration but also reflects concerns about future earnings visibility.

Another notable risk factor is the extremely high promoter share pledge, with 99.86% of promoter shares pledged. Such a high level of pledged shares can exert additional downward pressure on the stock price, especially in volatile or declining markets, as forced selling may occur if margin calls arise.

Rajshree Sugars has underperformed not only in the last year but also over longer periods, lagging behind the BSE500 index in the last three years, one year, and three months. This consistent underperformance highlights structural challenges within the company and the sector.

Sector and Market Comparison

Within the sugar industry, Rajshree Sugars’ performance stands out for its relative weakness. While the sector has faced cyclical pressures, the company’s financial metrics and stock price trajectory have lagged behind peers. The Sensex’s modest gains and proximity to its 52-week high contrast with Rajshree Sugars’ sustained downtrend, emphasising the stock’s divergence from broader market trends.

The company’s market cap grade of 4 indicates a mid-tier valuation relative to peers, but this is overshadowed by the weak profitability and high leverage. The Mojo Grade of Strong Sell reflects the comprehensive assessment of financial health, earnings trends, and valuation risks.

Summary of Key Data Points

• New 52-week low: Rs.25.05 (26 Feb 2026)
• 52-week high: Rs.52.50
• 1-year stock return: -42.97%
• Sensex 1-year return: +10.50%
• Consecutive days of decline: 11
• Decline over 11 days: -18.58%
• Debt to equity ratio (avg): 13.31 times
• Return on equity (avg): 3.09%
• Net sales (latest quarter): Rs.97.99 crores, down 23.7%
• PBT less other income (latest quarter): Rs.-20.25 crores, down 132.6%
• PAT (9 months): Rs.-28.92 crores, down 23.87%
• Promoter shares pledged: 99.86%
• Mojo Score: 3.0 (Strong Sell, downgraded from Sell on 5 Nov 2024)
• Market Cap Grade: 4

Conclusion

Rajshree Sugars & Chemicals Ltd’s fall to a 52-week low of Rs.25.05 reflects a combination of weak financial results, high leverage, and significant promoter share pledging. The stock’s sustained underperformance relative to the Sensex and its sector peers highlights ongoing challenges in both profitability and valuation. Trading below all major moving averages and with a recent downgrade to a Strong Sell rating, the stock remains under pressure amid a difficult operating environment and financial constraints.

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