Rajshree Sugars & Chemicals Ltd Falls to 52-Week Low of Rs.29.61

Stock Price Movement and Market Context

On 22 Jan 2026, Rajshree Sugars & Chemicals Ltd recorded its lowest price in the past year at Rs.29.61, underperforming its sector by 0.32% on the day. Despite a slight gain following four consecutive days of decline, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downtrend. This contrasts with the broader market, where the Sensex opened higher at 82,459.66 points, gaining 0.67% before settling at 82,197.92 points, down 0.35% intraday. The Sensex, although on a three-week losing streak with a 4.16% drop, remains 4.82% shy of its 52-week high of 86,159.02.

Rajshree Sugars & Chemicals Ltd’s 52-week high was Rs.63.99, indicating a steep decline of over 53% from that peak. Over the past year, the stock has delivered a negative return of -45.40%, significantly lagging behind the Sensex’s positive 7.67% performance. This persistent underperformance has been consistent over the last three years, with the stock also trailing the BSE500 index annually during this period.

Financial Performance and Fundamental Concerns

Rajshree Sugars & Chemicals Ltd’s financial metrics reveal ongoing difficulties. The company reported a decline in net sales by 17.1% in the quarter ending September 2025, contributing to very negative results. This marks the second consecutive quarter of negative earnings, with the Profit After Tax (PAT) for the quarter at Rs.-7.18 crore, a steep fall of 139.5% compared to the previous four-quarter average. Similarly, Profit Before Tax excluding other income (PBT less OI) stood at Rs.-7.73 crore, down 50.0% from the prior average.

Interest expenses have surged sharply, with a 127.29% increase over nine months to Rs.15.66 crore, reflecting the company’s high leverage. The average debt-to-equity ratio stands at a concerning 13.31 times, underscoring the heavy reliance on debt financing. This elevated debt burden has weighed on profitability, with the company generating an average Return on Equity (ROE) of just 3.09%, indicating limited returns on shareholders’ funds.

Valuation and Risk Profile

The stock’s valuation appears risky relative to its historical averages. Over the past year, profits have plummeted by 733.5%, while the stock price has declined by 45.40%. The company’s Mojo Score is 1.0, with a Mojo Grade of Strong Sell as of 5 Nov 2024, downgraded from Sell. This grading reflects the weak long-term fundamental strength and poor growth prospects, with operating profit shrinking at an annual rate of 4.97% over the last five years.

Adding to the risk profile, 100% of promoter shares are pledged, which can exert additional downward pressure on the stock price during market downturns. This factor, combined with the company’s financial strain, contributes to the cautious stance reflected in its market capitalisation grade of 4.

Sector and Market Comparison

Within the sugar industry, Rajshree Sugars & Chemicals Ltd’s performance contrasts with broader market trends. While the BSE Mid Cap index gained 0.92% on the day, the stock lagged behind its sector peers. The Sensex’s mixed signals, trading below its 50-day moving average but with the 50DMA above the 200DMA, highlight a market in flux, yet Rajshree Sugars remains distinctly weaker in comparison.

Summary of Key Metrics

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

• 52-week low price: Rs.29.61


• 52-week high price: Rs.63.99


• One-year stock return: -45.40%


• Sensex one-year return: +7.67%


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


• Return on equity (average): 3.09%


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


• Profit after tax (quarterly): Rs.-7.18 crore, down 139.5%


• Mojo Score: 1.0 (Strong Sell)


• Promoter shares pledged: 100%

Conclusion

Rajshree Sugars & Chemicals Ltd’s fall to a 52-week low of Rs.29.61 reflects a combination of subdued financial results, high leverage, and persistent underperformance relative to the broader market and sector peers. The company’s declining sales, rising interest costs, and negative profitability metrics have contributed to a challenging valuation environment. While the broader market shows mixed signals, Rajshree Sugars remains distinctly pressured, with its stock trading below all major moving averages and carrying a strong sell rating. These factors collectively illustrate the current state of the company’s market standing and financial health.

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