Rajshree Sugars & Chemicals Ltd Falls to 52-Week Low of Rs.27.86

Stock Performance and Market Context

On 19 Feb 2026, Rajshree Sugars & Chemicals Ltd’s share price slipped to Rs.27.86, the lowest level recorded in the past year. This represents a decline of 1.97% on the day, underperforming the sugar sector by 2.2%. The stock has been on a losing streak for six consecutive trading sessions, cumulatively falling by 11.19% during this period. This downtrend is further underscored by the stock trading below all key moving averages – the 5-day, 20-day, 50-day, 100-day, and 200-day averages – signalling persistent bearish momentum.

In comparison, the benchmark Sensex opened positively but reversed sharply, closing 0.37% lower at 83,424.62 points. The Sensex remains 3.28% below its 52-week high of 86,159.02, with its 50-day moving average positioned above the 200-day moving average, indicating a mixed technical backdrop for the broader market.

Financial Performance and Profitability Concerns

Rajshree Sugars & Chemicals Ltd’s financial results have reflected ongoing difficulties. 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) stood at a loss of Rs.20.25 crores, a deterioration of 132.6% relative to the prior four-quarter average. The net profit after tax (PAT) for the nine-month period was a loss of Rs.28.92 crores, worsening by 23.87%.

These figures highlight a challenging revenue environment and pressure on earnings, contributing to the stock’s weak performance. Over the last year, the stock has delivered a negative return of 39.18%, contrasting sharply with the Sensex’s positive 9.85% gain over the same period.

Long-Term Fundamental Weakness

The company’s long-term fundamentals remain under pressure. Operating profit has declined at an annualised rate of 249.91% over the past five years, indicating a sustained erosion of core profitability. The average return on equity (ROE) stands at a modest 3.09%, reflecting limited profitability generated from shareholders’ funds. Additionally, Rajshree Sugars & Chemicals Ltd carries a high debt burden, with an average debt-to-equity ratio of 13.31 times, which raises concerns about financial leverage and risk.

These factors contribute to the company’s current Mojo Score of 3.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 5 Nov 2024. The market capitalisation grade is rated 4, indicating a relatively small market cap within its sector.

Shareholding and Valuation Risks

Another notable risk factor is the high percentage of promoter shares pledged, which stands at 99.86%. Such a high level of pledged shares can exert additional downward pressure on the stock price during market declines, as forced selling or margin calls may occur. The stock’s valuation is also considered risky relative to its historical averages, with profits having fallen by 241.8% over the past year, further compounding investor concerns.

Rajshree Sugars & Chemicals Ltd has underperformed not only in the last year but also over the last three years and three months relative to the BSE500 index, underscoring a pattern of below-par performance in both the near and long term.

Summary of Key Metrics

To summarise, Rajshree Sugars & Chemicals Ltd’s stock has declined to Rs.27.86, its lowest level in 52 weeks, reflecting a combination of weak sales, negative profitability, high leverage, and significant promoter share pledging. The stock’s underperformance relative to the Sensex and its sector, coupled with deteriorating financial ratios, paints a challenging picture for the company’s current valuation and market standing.

While the broader market shows some resilience, Rajshree Sugars & Chemicals Ltd’s position remains subdued, with the stock trading well below all major moving averages and continuing its downward trajectory over recent sessions.

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