Stock Price Movement and Market Context
On 21 Jan 2026, Reliance Chemotex Industries Ltd’s share price touched an intraday low of Rs.122, representing a decline of 2.48% on the day. The stock opened at this level and traded consistently at this price throughout the session. This new low contrasts sharply with its 52-week high of Rs.217.35, underscoring a substantial depreciation of 43.9% from its peak.
The stock underperformed its sector, Garments & Apparels, which itself declined by 2.03% on the day. Reliance Chemotex’s drop was marginally steeper than the sector’s fall, with a relative underperformance of 0.53%. The broader market also faced headwinds, with the Sensex opening 385.82 points lower and closing down by 269.65 points at 81,525.00, a 0.8% decline. The Sensex has now recorded a three-week consecutive fall, losing 4.94% over this period.
Reliance Chemotex’s share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward momentum. The Sensex, while below its 50-day moving average, still maintains its 50DMA above the 200DMA, suggesting some underlying market resilience despite recent weakness.
Financial Performance and Valuation Metrics
Over the past year, Reliance Chemotex Industries Ltd has delivered a negative return of 38.01%, significantly underperforming the Sensex’s positive 7.49% return over the same period. This underperformance extends to longer time frames, with the stock lagging the BSE500 index over the last three years, one year, and three months.
The company’s long-term financial fundamentals present a mixed picture. Its 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 annualised rate of 8.44% over the past five years, while operating profit has increased by 17.83% annually during the same period. However, the company’s ability to service debt remains constrained, with a high Debt to EBITDA ratio of 4.66 times, signalling elevated leverage levels.
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Recent Quarterly Results and Profitability Trends
Despite the stock’s subdued price performance, Reliance Chemotex has reported positive results for three consecutive quarters. The company’s Profit After Tax (PAT) for the nine months ended has risen to Rs.4.55 crores, reflecting a robust growth rate of 84.21%. Quarterly net sales reached a peak of Rs.99.52 crores, indicating steady revenue generation in recent periods.
Valuation metrics suggest the stock is trading at an attractive level relative to its capital employed, with a ROCE of 4.5 and an Enterprise Value to Capital Employed ratio of 0.9. This valuation discount is notable when compared to the average historical valuations of its peers within the sector.
Profit growth over the past year has been substantial, with an increase of 87.4%, contrasting with the negative stock return of 38.01%. The company’s Price/Earnings to Growth (PEG) ratio stands at 0.2, indicating a low valuation relative to its earnings growth trajectory.
Shareholding and Market Sentiment
The majority shareholding in Reliance Chemotex Industries Ltd remains with the promoters, reflecting a concentrated ownership structure. The company’s Mojo Score is 32.0, with a Mojo Grade of Sell as of 25 Aug 2025, downgraded from a previous Strong Sell rating. The Market Cap Grade is 4, indicating a relatively modest market capitalisation within its sector.
On the trading day in question, the stock opened with a gap down of 2.48%, mirroring the day’s low and signalling immediate selling pressure. This price action, combined with the stock’s position below all major moving averages, highlights the prevailing cautious sentiment among market participants.
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Sectoral and Broader Market Influences
The Garments & Apparels sector, in which Reliance Chemotex operates, has experienced a decline of 2.03% on the day, reflecting broader pressures on textile-related stocks. This sectoral weakness is compounded by the overall market downturn, with the Sensex’s recent three-week slide and current trading below its 50-day moving average.
Reliance Chemotex’s stock performance is consistent with these trends, but its relative underperformance and valuation metrics suggest company-specific factors are also influencing investor sentiment. The company’s leverage and modest long-term growth rates contribute to the cautious outlook reflected in its current share price.
Summary of Key Metrics
To summarise, Reliance Chemotex Industries Ltd’s stock has declined to Rs.122, its lowest level in 52 weeks, amid a challenging market environment and sectoral headwinds. The stock’s one-year return of -38.01% contrasts with the Sensex’s positive 7.49% return, while its financial indicators reveal moderate growth and elevated debt levels. Recent quarterly results show profit growth, but the stock remains below all major moving averages and carries a Sell grade from MarketsMOJO.
The company’s valuation appears attractive relative to capital employed and peer comparisons, yet the stock’s price action reflects ongoing market caution. The promoter holding remains significant, and the company’s Mojo Score and Market Cap Grade indicate a modest market standing within the Garments & Apparels sector.
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