Rajshree Sugars & Chemicals Ltd Falls to 52-Week Low of Rs.26.01

Stock Performance and Market Context

On 24 Feb 2026, Rajshree Sugars & Chemicals Ltd’s share price declined by 2.77%, closing at Rs.26.01, the lowest level in the past year. This marks a continuation of a nine-day losing streak during which the stock has fallen by 17.09%. The current price is substantially below its 52-week high of Rs.52.50, representing a decline of over 50%. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.

In comparison, the Sensex index has also experienced a decline, falling 524.23 points (-0.92%) to 82,528.31 on the same day, after opening 242.12 points lower. Despite this, the Sensex remains 4.4% below its 52-week high of 86,159.02 and is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed signals for the broader market.

Rajshree Sugars & Chemicals Ltd’s performance over the past year has been notably weaker than the Sensex, with a total return of -43.39% compared to the Sensex’s positive 10.84%. This underperformance extends over longer periods as well, with the stock lagging the BSE500 index across one year, three years, and three months.

Financial Metrics and Profitability Concerns

Rajshree Sugars & Chemicals Ltd’s financial health has been under strain, as reflected in its recent quarterly and annual results. The company has reported negative results for three consecutive quarters. Net sales for the latest quarter stood at Rs.97.99 crore, down 23.7% compared to the average of the previous four quarters. Profit before tax excluding other income (PBT less OI) was a loss of Rs.20.25 crore, a deterioration of 132.6% relative to the prior four-quarter average. The nine-month period saw a net loss after tax (PAT) of Rs.28.92 crore, worsening by 23.87%.

Operating profits have been negative, contributing to a weak long-term fundamental strength assessment. Over the past five years, operating profit has declined at an annualised rate of 249.91%, indicating significant challenges in generating sustainable earnings. The company’s average return on equity (ROE) is 3.09%, signalling low profitability relative to shareholders’ funds.

Debt levels remain elevated, with an average debt-to-equity ratio of 13.31 times, underscoring a high leverage position. This financial structure increases the company’s risk profile, especially in a volatile market environment.

Shareholding and Valuation Risks

Another factor contributing to the stock’s pressure is the high proportion of promoter shares pledged, which stands at 99.86%. Such a high pledge percentage can exert additional downward pressure on the stock price during market declines, as pledged shares may be subject to liquidation or margin calls.

Valuation metrics also reflect the stock’s risk profile. The company’s stock is trading at levels considered risky relative to its historical valuations. Over the past year, profits have fallen by 241.8%, while the stock price has declined by 43.39%, indicating a disconnect between earnings deterioration and price movement.

Sector and Industry Context

Operating within the sugar industry, Rajshree Sugars & Chemicals Ltd faces sector-specific challenges that have influenced its performance. The sugar sector is often subject to cyclical fluctuations driven by factors such as raw material availability, government policies, and global commodity prices. These elements can impact revenue and profitability, particularly for companies with high leverage and limited operational flexibility.

The company’s Mojo Score currently stands at 3.0, with a Mojo Grade of Strong Sell as of 5 Nov 2024, an upgrade from the previous Sell rating. This grading reflects the company’s weak fundamentals and deteriorating financial metrics. The Market Cap Grade is 4, indicating a relatively small market capitalisation compared to peers, which can contribute to higher volatility and liquidity concerns.

Summary of Key Concerns

In summary, Rajshree Sugars & Chemicals Ltd’s stock has reached a 52-week low of Rs.26.01 following a sustained period of decline. The company’s financial results reveal declining sales, widening losses, and high leverage. The near-total pledge of promoter shares adds to the stock’s vulnerability in falling markets. Additionally, the stock’s underperformance relative to the Sensex and sector benchmarks highlights ongoing challenges in both the short and long term.

While the broader market has also experienced pressure, Rajshree Sugars & Chemicals Ltd’s specific financial and structural issues have contributed to its sharper decline. The stock’s position below all major moving averages and its negative returns over multiple time frames underscore the current difficult environment for the company.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →