Intraday Price Movements and Market Context
On 21 Nov 2025, Reliance Chemotex Industries opened with a gap down of 5.09%, reflecting immediate downward pressure. The stock’s intraday range saw a high of Rs.147.95, representing a 2.49% rise from the previous close, but it ultimately declined to touch the low of Rs.137, marking the new 52-week low. Despite this, the stock outperformed its sector by 2.13% during the day, indicating some relative resilience within the Garments & Apparels sector.
Notably, the stock is trading below all key moving averages — the 5-day, 20-day, 50-day, 100-day, and 200-day averages — signalling a sustained downward trend over multiple time frames. This contrasts with the broader market, where the Sensex opened lower at 85,347.40 points, down 0.33%, but remains close to its 52-week high of 85,801.70, trading currently at 85,417.73 points.
Long-Term Performance and Valuation Metrics
Over the past year, Reliance Chemotex Industries has recorded a return of -26.31%, underperforming the Sensex, which has shown a positive return of 10.72% over the same period. The stock’s 52-week high was Rs.247, highlighting the extent of the decline to the current low of Rs.137.
Financially, the company’s long-term fundamentals indicate modest growth. Net sales have expanded at an annual rate of 8.44% over the last five years, while operating profit has grown at 17.83% annually. The average Return on Capital Employed (ROCE) stands at 9.25%, which is considered moderate within the industry context.
Debt servicing capacity remains a concern, with a Debt to EBITDA ratio of 4.66 times, suggesting a relatively high leverage level. This ratio indicates the company’s earnings before interest, taxes, depreciation, and amortisation cover its debt obligations less comfortably compared to peers with lower ratios.
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Recent Quarterly Results and Profitability
Despite the stock’s price decline, Reliance Chemotex Industries has reported positive results for the last three consecutive quarters. The Profit After Tax (PAT) for the nine months ended is Rs.4.55 crores, showing an increase in absolute profit levels. Quarterly net sales reached Rs.99.52 crores, the highest recorded in recent periods.
The company’s ROCE for the recent period is reported at 4.5, which, when combined with an Enterprise Value to Capital Employed ratio of 0.9, suggests an attractive valuation relative to capital utilisation. This valuation is lower than the average historical valuations of its peers in the Garments & Apparels sector, indicating the stock is trading at a discount.
Over the past year, while the stock price has declined by 26.31%, profits have risen by 87.4%, reflecting a divergence between market valuation and earnings growth. The Price/Earnings to Growth (PEG) ratio stands at 0.3, which is comparatively low, signalling that earnings growth is not fully reflected in the stock price.
Shareholding and Sector Position
The majority shareholding in Reliance Chemotex Industries is held by promoters, maintaining significant control over the company’s strategic direction. The company operates within the Garments & Apparels industry, a sector that has experienced mixed performance in recent months, with some stocks showing recovery while others face headwinds.
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Comparative Market Analysis
Reliance Chemotex Industries’ underperformance relative to the broader market is evident when compared to the BSE500 index, where the stock has lagged over the last three years, one year, and three months. This trend highlights challenges in maintaining competitive growth and market positioning within its sector.
Meanwhile, the Sensex continues to trade above its 50-day moving average, with the 50-day average itself positioned above the 200-day moving average, indicating a generally bullish market environment. This divergence between the stock’s trajectory and the broader market indices underscores the specific pressures faced by Reliance Chemotex Industries.
Summary of Key Price and Performance Data
To summarise, Reliance Chemotex Industries has reached a 52-week low of Rs.137, down from its high of Rs.247 within the last year. The stock’s current trading levels are below all major moving averages, reflecting sustained downward momentum. The company’s financial metrics show moderate sales growth and profitability, but elevated leverage and below-average returns on capital have contributed to the subdued market valuation.
Recent quarterly results indicate improvements in profit and sales, yet these have not translated into upward price movement. The stock’s valuation metrics suggest it is trading at a discount relative to peers, despite the negative price trend.
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