Rossell India Ltd Stock Falls to 52-Week Low of Rs.40.25

Stock Price Movement and Market Context

On 2 Feb 2026, Rossell India Ltd opened with a gap down of -2.51%, continuing its downward trajectory to hit an intraday low of Rs.40.25, representing a sharp fall of -9.12% from previous levels. This decline was notably steeper than the Tea/Coffee sector’s gain of 2.57% on the same day, with Rossell India underperforming its sector by -11.14%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

In contrast, the broader market showed resilience, with the Sensex recovering from an initial drop of -167.26 points to close higher by 656.47 points, or 0.61%, at 81,212.15. Despite this positive market environment, Rossell India’s shares continued to decline, highlighting company-specific pressures.

Long-Term Performance and Valuation Metrics

Over the past year, Rossell India Ltd’s stock has delivered a negative return of -39.19%, significantly lagging behind the Sensex’s positive 4.79% gain. The stock’s 52-week high was Rs.86.65, underscoring the extent of the recent decline. The company’s market capitalisation is graded at 4, reflecting its mid-tier size within the FMCG sector.

Financially, the company has exhibited weak long-term fundamentals. Operating profits have contracted at a compound annual growth rate (CAGR) of -18.57% over the last five years. Profitability metrics remain subdued, with an average Return on Equity (ROE) of 7.59%, indicating limited returns generated on shareholders’ funds. Additionally, the company’s ability to service debt is constrained, as evidenced by a high Debt to EBITDA ratio of 3.54 times.

Institutional Participation and Recent Results

Institutional investors have reduced their holdings in Rossell India Ltd by -0.57% over the previous quarter, now collectively holding 3.25% of the company’s shares. This decline in institutional participation may reflect concerns regarding the company’s financial trajectory and market positioning.

The company reported flat results in January 2070, which did not provide a catalyst for positive price movement. The lack of significant earnings growth in the near term has contributed to the subdued market sentiment.

Comparative Sector and Market Performance

Rossell India’s underperformance is further highlighted by its lagging returns relative to the BSE500 index over multiple time frames, including the last three years, one year, and three months. While the Tea/Coffee sector has shown modest gains, Rossell India’s stock has continued to trend downward, reflecting company-specific factors rather than sector-wide issues.

Valuation and Profitability Considerations

Despite the challenges, Rossell India Ltd’s valuation metrics suggest a degree of attractiveness. The company’s Return on Capital Employed (ROCE) stands at 5.4%, and it trades at an Enterprise Value to Capital Employed ratio of 0.7, indicating a discount relative to its peers’ historical valuations. Over the past year, while the stock price declined by -39.19%, the company’s profits increased by 11.8%, resulting in a Price/Earnings to Growth (PEG) ratio of 1. This divergence between profit growth and share price performance highlights a disconnect that may be influenced by broader market perceptions and risk assessments.

Mojo Score and Rating Update

Rossell India Ltd currently holds a Mojo Score of 31.0, with a Mojo Grade of Sell as of 1 Feb 2026. This represents an upgrade from a previous Strong Sell rating, indicating a slight improvement in the company’s outlook, though the overall assessment remains cautious. The rating reflects the company’s weak long-term fundamentals, low profitability, and high leverage, which continue to weigh on investor sentiment.

Summary of Key Metrics

To summarise, Rossell India Ltd’s stock has reached a new 52-week low of Rs.40.25, reflecting a year-long decline of -39.19%. The company’s financial profile is characterised by declining operating profits, modest returns on equity, and elevated debt levels. Institutional investors have reduced their stakes, and the stock trades below all major moving averages. Despite some valuation appeal based on ROCE and Enterprise Value to Capital Employed ratios, the stock’s performance remains subdued relative to sector peers and the broader market.

These factors collectively illustrate the challenges faced by Rossell India Ltd in maintaining market confidence and achieving sustained price appreciation.

Unlock special upgrade rates for a limited period. Start Saving Now →