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 session. Despite touching an intraday high of Rs.147.95, the stock ultimately settled near its low point of Rs.137, representing the new 52-week low. This price level is notably below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
In comparison, the Sensex opened lower at 85,347.40, down by 285.28 points or 0.33%, and was trading at 85,417.73 at the time of reporting, a decline of 0.25%. 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 market environment. This divergence highlights the specific challenges faced by Reliance Chemotex Industries within its sector.
Performance Overview Over the Past Year
Reliance Chemotex Industries has recorded a 26.31% decline in stock value over the last twelve months, a stark contrast to the Sensex's 10.72% gain during the same period. The stock’s 52-week high was Rs.247, underscoring the extent of the recent price contraction. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index over one, three years, and the last three months.
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Financial Metrics and Long-Term Trends
Examining the company’s financial fundamentals reveals several factors contributing to the current valuation. The average Return on Capital Employed (ROCE) stands at 9.25%, which is considered modest within the Garments & Apparels sector. 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 suggest moderate expansion but fall short of robust growth benchmarks.
Debt servicing capacity is a notable concern, with a Debt to EBITDA ratio of 4.66 times. This level indicates a relatively high leverage position, which may constrain financial flexibility. The company’s long-term and near-term performance metrics reflect subdued momentum, as evidenced by the negative returns and underperformance relative to broader market indices.
Recent Quarterly Results and Valuation Insights
Despite the stock’s price challenges, Reliance Chemotex Industries has reported positive results for three consecutive quarters. The Profit After Tax (PAT) for the nine-month period stands at Rs.4.55 crores, while quarterly net sales reached a peak of Rs.99.52 crores. These figures indicate operational progress in recent periods.
The company’s ROCE for the latest period is recorded at 4.5%, accompanied by an Enterprise Value to Capital Employed ratio of 0.9. This valuation metric suggests the stock is trading at a discount relative to its peers’ historical averages. Additionally, profits have risen by 87.4% over the past year, despite the stock’s negative return of 26.31%. The Price/Earnings to Growth (PEG) ratio stands at 0.3, reflecting the relationship between earnings growth and valuation.
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Shareholding and Sector Position
The majority shareholding in Reliance Chemotex Industries is held by promoters, which often suggests a stable ownership structure. The company operates within the Garments & Apparels industry, a sector that has experienced varied performance across different market cycles. While the broader market indices maintain a generally positive trajectory, Reliance Chemotex Industries’ stock price reflects sector-specific pressures and company-level factors.
Summary of Key Price and Market Data
To summarise, the stock’s new 52-week low of Rs.137 represents a significant price milestone. The day’s trading saw a high of Rs.147.95 and a low of Rs.137, with the stock closing near the lower end of this range. The stock outperformed its sector by 2.13% on the day, despite opening with a gap down of 5.09%. Market capitalisation grading places the company at a moderate level within its peer group.
In contrast, the Sensex remains near its 52-week high and trades above key moving averages, underscoring the divergence between Reliance Chemotex Industries and the broader market trend.
Conclusion
Reliance Chemotex Industries’ fall to its 52-week low of Rs.137 highlights the challenges faced by the company amid a mixed financial and market backdrop. While recent quarterly results show positive profit and sales figures, the stock’s valuation and leverage metrics reflect ongoing pressures. The company’s performance relative to the Sensex and sector indices indicates a cautious market stance towards this stock at present.
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