Stock Performance and Market Context
On 24 Nov 2025, Refex Industries recorded an intraday low of Rs.315.25, representing a 3.06% drop during the trading session. This level marks the lowest price point for the stock in the past year, underscoring a sustained downward trend. Over the last six trading days, the stock has experienced a cumulative return decline of approximately 10.53%, reflecting persistent selling pressure.
In comparison, the broader Sensex index opened 88.12 points higher and was trading at 85,455.79, up 0.26% on the day. The Sensex is currently within 0.4% of its 52-week high of 85,801.70 and has recorded a 2.69% gain over the past three weeks. Mega-cap stocks have been leading this upward momentum, with the index trading above its 50-day and 200-day moving averages, signalling a generally bullish market environment.
Refex Industries, however, has underperformed its sector and the market. The stock lagged the Other Chemical products sector by 1.83% on the day and is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates a weaker momentum relative to both its sector peers and the broader market.
Financial Metrics and Valuation Insights
Over the past year, Refex Industries has generated a negative return of 32.62%, contrasting with the Sensex’s positive return of 8.02% and the BSE500’s 6.77% gain. Despite this, the company’s profits have shown a rise of 59.8% during the same period, suggesting a divergence between earnings growth and stock price performance.
The company’s price-to-book value stands at 3.5 times, which is considered relatively high compared to its peers’ historical averages. This premium valuation may be a factor contributing to the stock’s subdued price action, as investors weigh the company’s financial metrics against its market price.
Return on equity (ROE) is reported at 13.5%, indicating a moderate level of profitability relative to shareholder equity. The PEG ratio, which relates price-to-earnings to earnings growth, is at 0.6, reflecting the relationship between valuation and earnings expansion.
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Revenue and Cash Flow Trends
Net sales for the latest six-month period stand at Rs.792.86 crores, reflecting a contraction of 22.19% compared to the previous corresponding period. This decline in sales volume or value has likely contributed to the pressure on the stock price.
Operating cash flow for the year is reported at a negative Rs.262.25 crores, indicating cash outflows from core business activities. This figure represents the lowest level of operating cash flow recorded recently, which may be a concern for liquidity and operational funding.
Interest expenses for the nine-month period total Rs.21.60 crores, showing a growth of 26.54%. Rising interest costs can impact net profitability and cash flow availability, adding to the financial considerations for the company.
Debt and Profitability Metrics
Despite the challenges in sales and cash flow, Refex Industries maintains a relatively low debt burden, with a Debt to EBITDA ratio of 0.65 times. This suggests a manageable level of leverage and a capacity to service debt obligations without excessive strain.
Operating profit has grown at an annual rate of 30.59%, indicating healthy long-term growth in earnings before interest, taxes, depreciation, and amortisation. This growth rate contrasts with the recent sales contraction, highlighting a complex financial profile.
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Summary of Recent Market Behaviour
The stock’s decline to Rs.315.25 marks a significant technical milestone, as it trades well below its 52-week high of Rs.574.70. The six-day consecutive fall and underperformance relative to both the sector and broader market indices reflect ongoing pressures on the stock.
While the Sensex and mega-cap stocks have shown resilience and upward momentum, Refex Industries remains in a weaker technical position. The stock’s trading below all major moving averages further emphasises the current bearish trend.
Investors observing the stock will note the divergence between earnings growth and stock price movement, alongside valuation metrics that suggest a premium relative to peers. The combination of declining sales, negative operating cash flow, and rising interest expenses adds complexity to the company’s financial outlook.
Conclusion
Refex Industries’ stock reaching a 52-week low of Rs.315.25 highlights a period of subdued market performance amid broader positive market conditions. The company’s financial data presents a mixed picture, with profit growth contrasting against sales contraction and cash flow challenges. The stock’s current valuation and technical indicators reflect the market’s cautious stance towards the company’s near-term prospects.
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