Rajshree Sugars & Chemicals Ltd Falls to 52-Week Low of Rs.28.21

Stock Price Movement and Market Context

On 13 Feb 2026, Rajshree Sugars & Chemicals Ltd’s stock price reached Rs.28.21, the lowest level recorded in the past year. This new low comes after two consecutive days of declines, during which the stock lost approximately 7.81% in returns. Despite this, the stock marginally outperformed its sector by 0.5% on the day, indicating some relative resilience within the sugar industry.

The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained bearish trend. This technical positioning suggests that the stock has been under consistent selling pressure over multiple time frames.

In comparison, the Sensex opened lower by 772.19 points and was trading at 82,889.85, down 0.94% on the same day. The benchmark index remains 3.94% below its 52-week high of 86,159.02, with the 50-day moving average still positioned above the 200-day moving average, reflecting a cautiously optimistic medium-term market trend despite short-term weakness.

Financial Performance and Profitability Concerns

Rajshree Sugars & Chemicals Ltd’s financial metrics reveal ongoing challenges. The company has reported negative results for the last three consecutive quarters, with net sales for the most recent quarter at Rs.97.99 crore, 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 crore, a decline of 132.6% relative to the prior four-quarter average.

For the nine-month period, the company posted a net loss after tax (PAT) of Rs.28.92 crore, representing a 23.87% deterioration. These figures highlight a contraction in revenue and profitability, contributing to the stock’s subdued performance.

Over the last five years, the company’s operating profit has declined at an annualised rate of -249.91%, indicating persistent difficulties in generating sustainable earnings growth. The average return on equity (ROE) remains low at 3.09%, reflecting limited profitability relative to shareholders’ funds.

Debt Levels and Shareholding Structure

The company’s financial leverage remains a concern, with an average debt-to-equity ratio of 13.31 times. This high level of indebtedness places additional pressure on the company’s financial health and limits flexibility in managing costs and investments.

Furthermore, 99.86% of promoter shares are pledged, which can exert downward pressure on the stock price in volatile market conditions. Such a high pledge percentage often signals increased risk for shareholders, particularly in a declining market environment.

Comparative Performance and Market Position

Rajshree Sugars & Chemicals Ltd has underperformed significantly relative to the broader market. Over the past year, the stock has delivered a negative return of 39.65%, while the Sensex has gained 8.91% during the same period. This divergence underscores the company’s challenges in maintaining investor confidence and market relevance.

Additionally, the stock’s 52-week high was Rs.52.50, indicating a steep decline of nearly 46% from that peak to the current 52-week low. The stock has also underperformed the BSE500 index over the last three years, one year, and three months, reflecting persistent underperformance across multiple time horizons.

The company’s Mojo Score stands at 3.0 with a Mojo Grade of Strong Sell, upgraded from Sell on 5 Nov 2024, reflecting a deteriorated outlook based on fundamental and market factors. The market capitalisation grade is 4, indicating a micro-cap status with associated liquidity and volatility considerations.

Summary of Key Metrics

To summarise, Rajshree Sugars & Chemicals Ltd’s stock has reached a critical low point at Rs.28.21, reflecting a combination of declining sales, negative profitability, high leverage, and significant promoter share pledging. The stock’s technical indicators remain weak, trading below all major moving averages, while its financial performance continues to show contraction in key areas.

The company’s long-term growth trajectory has been negative, with operating profits shrinking substantially over the past five years. Its relative underperformance against the Sensex and BSE500 indices further highlights the challenges faced in regaining market momentum.

These factors collectively contribute to the stock’s current valuation pressures and the prevailing market sentiment surrounding Rajshree Sugars & Chemicals Ltd.

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