Rajshree Sugars & Chemicals Ltd Falls to 52-Week Low of Rs.29.4

Stock Price Movement and Market Context

The stock of Rajshree Sugars & Chemicals Ltd has been under pressure, declining for two consecutive sessions and registering a cumulative loss of 5.71% over this period. Today’s closing price of Rs.29.4 represents the lowest level the stock has traded at in the past year, down sharply from its 52-week high of Rs.57.94. This decline contrasts with the broader market trend, where the Sensex recovered from an initial negative opening to close 0.3% higher at 81,784.10 points. Despite the market’s modest gains, Rajshree Sugars underperformed its sector by 2.39% today.

The stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating sustained downward momentum. This technical positioning suggests that the stock remains in a bearish phase relative to its recent trading history.

Financial Performance and Fundamental Concerns

Rajshree Sugars & Chemicals Ltd’s financial indicators reveal ongoing challenges. The company reported a 17.1% decline in net sales in its September 2025 quarter, contributing to a series of negative quarterly results. The last two quarters have seen the company post losses, with the Profit Before Tax excluding other income (PBT less OI) falling by 50% to a negative Rs.7.73 crores, and the Profit After Tax (PAT) plunging by 139.5% to a loss of Rs.7.18 crores compared to the previous four-quarter average.

Interest expenses have surged significantly, with a 127.29% increase over nine months to Rs.15.66 crores, reflecting the company’s high leverage. The average debt-to-equity ratio stands at a substantial 13.31 times, underscoring the heavy reliance on debt financing. This elevated debt burden weighs on profitability and cash flow, limiting financial flexibility.

Long-Term Growth and Profitability Trends

Over the past five years, Rajshree Sugars has experienced a negative compound annual growth rate in operating profit of -4.97%, indicating a contraction in core earnings capacity. The company’s average return on equity (ROE) is a modest 3.09%, signalling limited profitability relative to shareholder funds. These metrics highlight structural weaknesses in the company’s earnings profile and growth trajectory.

Valuation and Risk Factors

The company’s Mojo Score currently stands at 1.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 5 November 2024. This reflects a deteriorated outlook based on fundamental and technical assessments. The stock’s market capitalisation grade is 4, indicating a mid-tier market cap within its sector.

Rajshree Sugars’ stock has generated a negative return of 42.04% over the past year, significantly underperforming the Sensex, which gained 8.55% during the same period. Profitability has also deteriorated sharply, with reported profits falling by 733.5% year-on-year. The company’s performance has lagged behind the broader BSE500 index over one, three years, and the last three months, signalling persistent underperformance.

Another notable risk is the extremely high promoter share pledge, with 99.86% of promoter holdings pledged as collateral. This factor can exert additional downward pressure on the stock price in volatile or declining markets, as pledged shares may be subject to forced selling.

Sector and Market Environment

The sugar sector, to which Rajshree Sugars belongs, has faced headwinds in recent periods, with other indices such as NIFTY MEDIA and NIFTY REALTY also hitting 52-week lows today. While mega-cap stocks have led the broader market recovery, smaller and mid-cap companies like Rajshree Sugars have struggled to regain footing.

The Sensex remains below its 50-day moving average, although the 50-day average is still above the 200-day average, indicating a mixed technical environment for the broader market. Rajshree Sugars’ continued trading below all major moving averages contrasts with this, highlighting its relative weakness.

Summary of Key Financial Metrics

To summarise, Rajshree Sugars & Chemicals Ltd’s key financial and market metrics as of 27 January 2026 are:

• New 52-week low price: Rs.29.4


• 52-week high price: Rs.57.94


• One-year stock return: -42.04%


• Sensex one-year return: +8.55%


• Debt-to-equity ratio (average): 13.31 times


• Return on equity (average): 3.09%


• Interest expense (9 months): Rs.15.66 crores, up 127.29%


• PBT less other income (quarterly): Rs.-7.73 crores, down 50%


• PAT (quarterly): Rs.-7.18 crores, down 139.5%


• Mojo Score: 1.0 (Strong Sell)


• Promoter shares pledged: 99.86%

The combination of high leverage, declining sales, negative profitability trends, and technical weakness has contributed to the stock’s fall to its 52-week low. These factors collectively illustrate the challenges faced by Rajshree Sugars & Chemicals Ltd in the current market environment.

Technical and Market Positioning

The stock’s position below all major moving averages signals continued bearish momentum. The recent two-day decline and underperformance relative to the sugar sector reinforce the cautious stance reflected in the company’s Mojo Grade. The broader market’s modest recovery today did not extend to Rajshree Sugars, which remains under pressure.

Given the company’s financial profile and market behaviour, the stock’s current valuation and risk profile remain areas of concern for market participants monitoring the sugar sector.

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