Stock Performance and Market Context
On the day, Refex Industries Ltd’s stock price fell by 4.40%, touching an intraday low of Rs.209.8, its lowest level in the past year. This decline came despite the broader market’s modest downturn, with the Sensex opening 167.26 points lower and trading at 80,509.68, down 0.26%. The stock underperformed its sector, the Other Chemical products segment, by 3.66% and has been on a downward trajectory for two consecutive sessions, losing 6.55% over this period.
Refex Industries is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This technical positioning contrasts with the Sensex, which, although trading below its 50-day moving average, still maintains a 50DMA above its 200DMA, indicating a more stable medium-term trend for the broader market.
Over the past year, Refex Industries has delivered a negative return of 54.80%, a stark contrast to the Sensex’s positive 3.85% gain. The stock’s 52-week high was Rs.534, highlighting the extent of the decline from its peak.
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Financial Performance Highlights
Refex Industries reported flat quarterly results for the period ending December 2025, with net sales declining by 16.04% to Rs.576.01 crores. This contraction in sales has contributed to the subdued market sentiment. Additionally, the company’s interest expenses reached a quarterly high of Rs.9.14 crores, adding to cost pressures.
Despite the sales decline, the company’s return on equity (ROE) remains at a moderate 14.1%. However, the stock’s valuation appears expensive relative to its fundamentals, trading at a price-to-book value of 2.4 times. This valuation is at a discount compared to the average historical valuations of its peers in the Other Chemical products sector.
Interestingly, while the stock price has fallen sharply, Refex Industries’ profits have increased by 27.2% over the past year, resulting in a price/earnings to growth (PEG) ratio of 0.9. This indicates that earnings growth has not been reflected in the share price, possibly due to other market concerns.
Shareholding and Market Sentiment
One notable factor weighing on the stock is the high level of promoter share pledging. Currently, 28.84% of promoter shares are pledged, and this proportion has increased by 1.64% over the last quarter. In a falling market environment, elevated pledged shares can exert additional downward pressure on stock prices, as forced selling may occur if margin calls arise.
Refex Industries has underperformed not only the Sensex but also the broader BSE500 index, which has generated a 3.64% return over the last year. The stock’s negative 54.80% return highlights its relative weakness within the market.
Debt and Growth Metrics
On a positive note, the company maintains a strong ability to service its debt, with a low Debt to EBITDA ratio of 0.65 times. This suggests manageable leverage and financial stability in terms of debt servicing capacity.
Long-term growth trends remain healthy, with net sales growing at an annual rate of 26.59% and operating profit expanding at 39.57%. These figures indicate that the company has demonstrated consistent growth over a longer horizon, despite recent quarterly setbacks.
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Summary of Key Metrics
As of 2 Feb 2026, Refex Industries Ltd holds a Mojo Score of 31.0 and a Mojo Grade of Sell, upgraded from a previous Strong Sell rating on 11 Aug 2025. The company’s market capitalisation grade stands at 3, reflecting its mid-tier market cap status within the sector.
The stock’s recent performance and valuation metrics underscore the challenges faced by Refex Industries in the current market environment. While the company’s long-term growth and debt servicing remain sound, the immediate price action and financial results have contributed to the stock’s decline to its 52-week low.
Market and Sector Comparison
On the same day, other indices such as the S&P BSE FMCG and NIFTY FMCG also hit new 52-week lows, indicating sectoral and market-wide pressures. Refex Industries’ underperformance relative to these benchmarks highlights the specific difficulties the company is encountering within the Other Chemical products sector.
Investors and market participants will note the divergence between the company’s operational growth and its share price trajectory, which has been influenced by valuation concerns, increased promoter share pledging, and recent quarterly sales contraction.
Conclusion
Refex Industries Ltd’s stock reaching a 52-week low of Rs.209.8 reflects a combination of subdued quarterly sales, elevated interest costs, valuation considerations, and shareholding structure dynamics. Despite healthy long-term growth rates and manageable debt levels, the stock’s recent performance has been impacted by these factors, resulting in significant underperformance relative to the broader market and sector peers.
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