Rajshree Sugars & Chemicals Ltd Falls to 52-Week Low of Rs.28.06

Stock Price Movement and Market Context

On 18 Feb 2026, Rajshree Sugars & Chemicals Ltd recorded a closing price of Rs.28.06, the lowest level in the past year. This represents a decline of 1.54% on the day and a cumulative fall of 10.55% over the last five trading sessions. The stock has consistently traded below its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

In comparison, the Sensex opened positively with a gain of 102.63 points but reversed to close 200.80 points lower at 83,352.79, down 0.12%. Despite this, the Sensex remains within 3.37% of its 52-week high of 86,159.02. The index trades below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed signals for the broader market.

Financial Performance and Profitability Concerns

Rajshree Sugars & Chemicals Ltd’s financial results have shown a downward trajectory over recent quarters. The company reported net sales of Rs.97.99 crores in the latest quarter, a decline of 23.7% compared to the average of the previous four quarters. Profit before tax excluding other income (PBT less OI) stood at a loss of Rs.20.25 crores, deteriorating by 132.6% relative to the prior four-quarter average. The net profit after tax (PAT) for the nine-month period was a negative Rs.28.92 crores, reflecting a 23.87% worsening.

These figures underscore the company’s ongoing difficulties in generating positive earnings, with operating losses contributing to a weak long-term fundamental strength. Over the past five years, operating profit has contracted at an annualised rate of 249.91%, highlighting persistent challenges in core business profitability.

Valuation and Risk Metrics

The company’s debt profile remains a significant concern, with an average debt-to-equity ratio of 13.31 times, indicating a highly leveraged capital structure. This elevated debt level adds pressure on financial stability and increases vulnerability to market fluctuations.

Return on equity (ROE) has averaged a modest 3.09%, signalling limited profitability generated from shareholders’ funds. The stock’s Mojo Score currently stands at 3.0 with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating on 5 Nov 2024, reflecting deteriorated fundamentals and heightened risk.

Rajshree Sugars & Chemicals Ltd’s stock has generated a negative return of 34.53% over the past year, substantially underperforming the Sensex’s positive 9.72% return during the same period. The stock’s 52-week high was Rs.52.50, underscoring the steep decline to the current low.

Promoter Shareholding and Market Pressure

Promoter shareholding is heavily pledged, with 99.86% of promoter shares under pledge. This factor often exerts additional downward pressure on the stock price during market downturns, as pledged shares may be subject to liquidation or margin calls, further impacting liquidity and valuation.

Rajshree Sugars & Chemicals Ltd has also underperformed the BSE500 index over the last three years, one year, and three months, indicating below-par performance both in the near and long term.

Summary of Key Financial and Market Indicators

Rajshree Sugars & Chemicals Ltd’s recent financial and market data highlight several critical points:

• New 52-week low price of Rs.28.06 recorded on 18 Feb 2026
• Five consecutive days of price decline, totalling a 10.55% loss
• Net sales down 23.7% in the latest quarter compared to prior averages
• Operating losses with PBT less other income at negative Rs.20.25 crores
• Negative PAT of Rs.28.92 crores over nine months, worsening by 23.87%
• High leverage with debt-to-equity ratio averaging 13.31 times
• Return on equity averaging a low 3.09%
• Mojo Grade downgraded to Strong Sell with a score of 3.0
• Promoter share pledge at 99.86%, adding to stock price pressure

These factors collectively illustrate the challenges faced by Rajshree Sugars & Chemicals Ltd in maintaining financial stability and market valuation amid sectoral and company-specific headwinds.

Sector and Market Comparison

Within the sugar industry, Rajshree Sugars & Chemicals Ltd’s performance contrasts with broader sector trends, where some peers have managed to stabilise or improve earnings. The stock’s underperformance relative to the Sensex and BSE500 indices further emphasises its current difficulties.

The Sensex’s proximity to its 52-week high and mixed moving average signals suggest that while the broader market retains some strength, Rajshree Sugars & Chemicals Ltd remains under pressure, reflecting company-specific issues rather than general market weakness.

Conclusion

Rajshree Sugars & Chemicals Ltd’s fall to a 52-week low of Rs.28.06 marks a significant milestone in its recent market journey. The combination of declining sales, negative profitability, high leverage, and substantial promoter share pledging has contributed to sustained downward pressure on the stock price. The company’s financial metrics and market performance indicate ongoing challenges that have yet to be resolved, as reflected in its Strong Sell rating and deteriorated Mojo Score.

Investors and market participants will continue to monitor the stock’s trajectory in the context of sector dynamics and broader market movements.

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