Rajshree Sugars & Chemicals Ltd Falls to 52-Week Low of Rs.29

Stock Price Movement and Market Context

On 12 Feb 2026, Rajshree Sugars & Chemicals Ltd’s stock touched an intraday low of Rs.29, representing a sharp decline of 7.55% for the day. This fall came after three consecutive days of gains, signalling a reversal in short-term momentum. The stock underperformed its sector by 6.51% on the same day, highlighting relative weakness within the sugar industry segment.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained bearish sentiment. This technical positioning suggests that the stock remains under pressure from a trend perspective.

Meanwhile, the broader market has shown mixed signals. The Sensex opened 265.21 points lower and closed down by 293.51 points at 83,674.92, a decline of 0.66%. Despite this, the Sensex remains only 2.97% below its 52-week high of 86,159.02 and has recorded a 2.62% gain over the past three weeks. The index is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, reflecting some underlying resilience in the market.

Financial Performance and Fundamental Concerns

Rajshree Sugars & Chemicals Ltd’s financial metrics reveal ongoing challenges. The company has reported negative results for three consecutive quarters, with net sales for 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-month period, the company posted a net loss after tax (PAT) of Rs.28.92 crores, representing a decline of 23.87%. These figures underscore the difficulties faced by the company in generating positive earnings and maintaining sales momentum.

Over the last five years, the company’s operating profit has contracted at an annual rate of 4.97%, reflecting subdued long-term growth prospects. The average return on equity stands at a modest 3.09%, indicating limited profitability relative to shareholders’ funds.

Debt Levels and Shareholding Structure

The company’s financial leverage remains a significant concern. Rajshree Sugars & Chemicals Ltd carries a high average debt-to-equity ratio of 13.31 times, indicating a substantial reliance on borrowed funds. This elevated debt burden contributes to the company’s weak long-term fundamental strength and heightens financial risk.

Additionally, promoter shareholding is heavily pledged, with 99.86% of promoter shares under pledge. Such a high level of pledged shares can exert additional downward pressure on the stock price, especially in volatile or falling markets, as it may lead to forced selling or margin calls.

Relative Performance and Valuation

Rajshree Sugars & Chemicals Ltd’s stock has delivered a negative return of 41.86% over the past year, markedly underperforming the Sensex, which gained 9.85% during the same period. The stock’s 52-week high was Rs.52.50, highlighting the extent of the decline to the current low of Rs.29.

Profitability has deteriorated sharply, with profits falling by 733.5% over the last year. The stock’s valuation appears risky relative to its historical averages, reflecting investor concerns about the company’s earnings trajectory and financial health.

Performance over longer periods also remains below par, with the stock underperforming the BSE500 index over the last three years, one year, and three months. This trend points to persistent challenges in both near-term and long-term growth and value creation.

Summary of Key Metrics

Rajshree Sugars & Chemicals Ltd currently holds a Mojo Score of 3.0 with a Mojo Grade of Strong Sell, upgraded from Sell on 5 Nov 2024. The company’s market capitalisation grade stands at 4, reflecting its micro-cap status within the sugar sector.

The stock’s day change of -7.52% on 12 Feb 2026 further emphasises the ongoing downward pressure. The combination of weak sales, negative profitability, high leverage, and significant promoter pledge levels contribute to the stock’s current valuation and performance challenges.

While the broader market shows some resilience, Rajshree Sugars & Chemicals Ltd’s share price remains under strain, reflecting the company’s specific financial and operational difficulties.

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