Reliance Chemotex Industries Falls to 52-Week Low of Rs.137

Intraday Price Movements and Market Context

On 21 Nov 2025, Reliance Chemotex Industries opened with a gap down of 5.09%, setting the tone for a challenging trading session. Despite an intraday high of Rs.147.95, representing a 2.49% rise from the opening price, the stock ultimately declined to its lowest point of Rs.137, closing at this 52-week low. This performance outpaced the sector by 2.13% in terms of day change, though it remained below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.

In contrast, the broader market showed resilience. The Sensex opened lower at 85,347.40, down 285.28 points or 0.33%, but later traded at 85,417.73, a 0.25% decline. Notably, the Sensex remains close to its 52-week high of 85,801.70, trading above its 50-day and 200-day moving averages, signalling a generally bullish trend in the wider market.

Performance Over the Past Year

Reliance Chemotex Industries has experienced a notable decline over the last twelve months, with its stock price reflecting a 26.31% reduction. This contrasts with the Sensex, which recorded a positive return of 10.72% over the same period. The stock’s 52-week high was Rs.247, highlighting the extent of the recent price contraction.

Over the longer term, the stock has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. This underperformance suggests persistent challenges relative to the broader market and sector peers.

Financial Metrics and Valuation

Examining the company’s financial fundamentals reveals a mixed picture. The average Return on Capital Employed (ROCE) stands at 9.25%, which is considered modest within the industry. Net sales have grown at an annual rate of 8.44% over the past five years, while operating profit has shown a growth rate of 17.83% during the same period. These figures indicate some level of growth, albeit at a pace that may not be sufficient to drive significant stock appreciation.

Debt servicing capacity remains a concern, with a Debt to EBITDA ratio of 4.66 times, suggesting a relatively high leverage position. This level of indebtedness can constrain financial flexibility and may weigh on investor sentiment.

Recent Quarterly Results

Despite the stock’s downward trajectory, Reliance Chemotex Industries has reported positive results for the last three consecutive quarters. The Profit After Tax (PAT) for the nine-month period reached Rs.4.55 crores, while quarterly net sales hit a peak of Rs.99.52 crores. These figures reflect operational progress in the near term, even as the stock price remains subdued.

Valuation metrics also present an interesting contrast. The company’s ROCE for the recent period is 4.5, accompanied by an Enterprise Value to Capital Employed ratio of 0.9, which is considered attractive. The stock trades at a discount relative to its peers’ average historical valuations, suggesting that the market is pricing in ongoing challenges.

Over the past year, while the stock price has declined by 26.31%, profits have risen by 87.4%. The Price/Earnings to Growth (PEG) ratio stands at 0.3, indicating that earnings growth has outpaced the decline in stock price, a factor that may be relevant for valuation considerations.

Shareholding and Sector Position

Reliance Chemotex Industries operates within the Garments & Apparels sector, a segment that has seen varied performance across companies. The majority shareholding is held by promoters, which often implies a stable ownership structure. However, the stock’s recent price action and financial metrics suggest that the company is navigating a challenging environment relative to its sector peers.

Summary of Key Price and Market Data

The stock’s new 52-week low of Rs.137 represents a significant milestone, reflecting a decline from its peak of Rs.247 within the last year. The day’s trading saw a high of Rs.147.95 and a low of Rs.137, with the stock opening lower by 5.09%. Despite outperforming the sector by 2.13% on the day, the overall trend remains downward, with the stock trading below all major moving averages.

In comparison, the Sensex continues to trade near its 52-week high, supported by bullish moving averages, underscoring the divergence between Reliance Chemotex Industries and the broader market.

Investors and market watchers may note the contrast between the company’s recent profit growth and its stock price performance, as well as the implications of its leverage and valuation metrics within the Garments & Apparels sector.

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