Stock Price Movement and Market Context
The stock opened sharply lower at Rs.110.15, representing a gap down of -7.44% from the previous close. During the trading session, it hit an intraday low of Rs.110.15, down -8.97% on the day, underperforming its sector by -5.16%. This marks the second consecutive day of decline, with the stock losing -7.17% over this period. Notably, the stock has not traded on one of the last 20 trading days, indicating some irregularity in liquidity or trading activity.
Reliance Chemotex is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend in price momentum. This technical positioning reflects the prevailing bearish sentiment among market participants.
In contrast, the broader market benchmark, the Sensex, opened lower at 81,947.31, down -619.06 points (-0.75%), and was trading at 82,213.61 (-0.43%) at the time of reporting. The Sensex remains 4.8% below its 52-week high of 86,159.02, with its 50-day moving average still above the 200-day moving average, indicating a cautiously optimistic medium-term market trend.
Financial Performance and Valuation Metrics
Over the past year, Reliance Chemotex Industries Ltd has delivered a negative return of -37.79%, significantly underperforming the Sensex’s positive 7.09% return. The stock’s 52-week high was Rs.217.35, highlighting the extent of the recent decline.
From a fundamental perspective, the company exhibits weak long-term financial strength. Its average Return on Capital Employed (ROCE) stands at 9.25%, which is modest relative to industry standards. Net sales have grown at an annualised rate of 8.44% over the last five years, while operating profit has increased at 17.83% annually during the same period. These growth rates, while positive, have not translated into strong stock performance.
Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 4.66 times, indicating elevated leverage levels that could constrain financial flexibility.
Under the radar no more! This Large Cap from Cement is emerging from turnaround with solid fundamentals intact. Discover it while it's still relatively hidden!
- - Hidden turnaround gem
- - Solid fundamentals confirmed
- - Large Cap opportunity
Recent Quarterly Results and Profitability
Despite the stock’s subdued price action, the company has reported positive results for the last three consecutive quarters. The Profit After Tax (PAT) for the nine-month period stands at Rs.4.55 crores, reflecting a robust growth rate of 84.21%. Quarterly net sales reached a peak of Rs.99.52 crores, indicating some operational strength in revenue generation.
Valuation metrics suggest the stock is trading at a discount relative to its peers. The company’s ROCE for the recent period is 4.5%, and it has an attractive Enterprise Value to Capital Employed ratio of 0.9. The Price/Earnings to Growth (PEG) ratio is notably low at 0.2, signalling that the stock’s price decline may not fully reflect the recent profit growth of 87.4% over the past year.
Majority ownership remains with promoters, which may influence strategic decisions and long-term direction.
Holding Reliance Chemotex Industries Ltd from Garments & Apparels? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Long-Term Performance and Market Position
Reliance Chemotex Industries Ltd has underperformed not only in the last year but also over longer periods. It has lagged behind the BSE500 index in the last three years, one year, and three months, reflecting persistent challenges in delivering shareholder returns. The stock’s Mojo Score currently stands at 32.0, with a Mojo Grade of Sell, downgraded from Strong Sell on 25 August 2025. The Market Cap Grade is 4, indicating a mid-tier market capitalisation relative to peers.
The Garments & Apparels sector itself has experienced mixed performance, with some stocks outperforming while others face headwinds from changing consumer demand and global supply chain pressures. Reliance Chemotex’s relative underperformance within this sector highlights the need for close monitoring of its financial and market developments.
Summary of Key Metrics
To summarise, the stock’s recent fall to Rs.110.15 represents a significant technical low, with the following key points:
- 52-week low price: Rs.110.15
- Consecutive two-day decline of -7.17%
- Underperformance relative to sector by -5.16% on the day
- Trading below all major moving averages
- One non-trading day in the last 20 sessions
- One-year return of -37.79% versus Sensex’s 7.09%
- Average ROCE of 9.25% and Debt to EBITDA ratio of 4.66 times
- Recent PAT growth of 84.21% over nine months
- PEG ratio of 0.2 indicating low valuation relative to earnings growth
These figures provide a comprehensive view of the stock’s current standing within the market and its financial health.
Conclusion
Reliance Chemotex Industries Ltd’s decline to a 52-week low reflects a combination of subdued long-term financial metrics, elevated leverage, and recent price momentum. While recent quarterly results show profit growth and positive sales trends, the stock’s valuation and technical indicators suggest continued caution. The company’s position within the Garments & Apparels sector and its relative underperformance compared to broader indices underscore the challenges faced in regaining upward price momentum.
Unlock special upgrade rates for a limited period. Start Saving Now →
